The other threat of housing to the economy

The other threat of housing to the economy

The Commerce Department’s gross domestic product report released Thursday will likely show that housing helped boost economic growth in the third quarter. This should not obscure the fact that the housing market is absolutely and horribly bad and the economy is worse off for it.

Last Thursday, the National Association of Realtors said 3.96 million existing or existing homes were sold in September at a seasonally adjusted annual rate. This figure is down from 4.68 million recorded a year earlier, and even lower than the levels reached just after the start of the pandemic. This is a symptom of the rapid rise in mortgage rates which, in addition to making access to housing much more difficult, has made people who already own homes reluctant to sell, as this would involve financing the purchase of their next accommodation at a very high cost. higher rates than they currently pay. The report shows there were just 1.13 million homes on the market last month, the lowest figure ever recorded for a September.

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With a penchant for words, Eleon Smith began writing at an early age. As editor-in-chief of his high school newspaper, he honed his skills telling impactful stories. Smith went on to study journalism at Columbia University, where he graduated top of his class. After interning at the New York Times, Smith landed a role as a news writer. Over the past decade, he has covered major events like presidential elections and natural disasters. His ability to craft compelling narratives that capture the human experience has earned him acclaim. Though writing is his passion, Eleon also enjoys hiking, cooking and reading historical fiction in his free time. With an eye for detail and knack for storytelling, he continues making his mark at the forefront of journalism.
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