US sales of new homes plunge to 9-month low, as higher mortgage rates weigh on housing rebound

  • Article by: CHRISTOPHER S. RUGABER , Associated Press
  • Updated: August 23, 2013 - 9:09 PM

WASHINGTON — Americans cut back sharply in July on their purchases of new homes, a sign that higher mortgage rates may slow the housing recovery.

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hahatsktskAug. 23, 13 9:29 AM

Wasn't the housing market booming last week? Guess there was a reason Wells Fargo had the layoffs.

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richieAug. 23, 13 9:31 AM

whose idea was it to raise the rates ??

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peoplewatchrAug. 23, 13 9:52 AM

The last statement in this article suggests the sad state of America. TAX REVENUE!!! Is that what it's all about now?

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dumbgopAug. 23, 13 9:52 AM

I wonder how many Obama supporters realize that once team Obama stops pumping money into this leaking boat how quickly things are going to implode.

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mattaudioAug. 23, 1310:01 AM

It's unfortunate that we keep thinking of "new" home sales as a good indicator of economic health.

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duck2013Aug. 23, 1310:09 AM

So the current artificially low 30-fixed mortgage rates of 4.5% is so high that it caused home sales to plunge? The Federal Reserve is printing money to lower interest rates and artificially inflate asset values like stocks, bonds, and homes. Interest rates on 30-year fixed mortgages hit 3.4%. My parents paid 7.6% when they bought their first home in the 1970s. The difference between then and now is that 77% of all jobs created were NOT part-time as they are today. Barack Obama has done a tremendous amount of damage to this country that will be felt for generations to come.

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omgurdensAug. 23, 1310:31 AM

The housing market traditionally slows in July and August as summer and vacations take over the urge to move. Spring and Fall, especially May, June, and September are always peak months. Don't worry everyone, the sky isn't falling, people are just having more barbecues than at other times of the year.

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cavellAug. 23, 1310:34 AM

A loan at 3.5% is only 100 month more than 4.5% with a 150k balance. Pretty sad buyers can't swing another $100 each month.

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dumbgopAug. 23, 1310:35 AM

haha, I know. Same as the great unemployment figures. Of course if you would like to see the revised figures which are much worse, you'll have to do an advanced search here at the good old Strib. The place to come for the FACTS!!!

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redblack30Aug. 23, 1310:45 AM

And this is Obama's fault because? Because he didn't cut government spending more? Because he didn't institute enough austerity? Because he raised taxes on the wealthy? Because the deficit is falling? Because House Republicans threaten debt default and a government shutdown? Monetary policy can only do so much. What we need is what Bernanke keeps telling Congress-an expansionary fiscal policy-higher spending in the short term for higher growth now and lower deficits later.

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