(NBC) There’s a new stumbling block for potential homebuyers as mortgage rates spike, causing a big decline in housing sales.
Homes currently on the market are selling at the slowest pace since September 2012.
A monthly survey from the National Association of Realtors shows that sales of existing homes fell 1.5% in September to a 10-year low.
All due to the new average rate on a 30-year fixed home loan that is now just over 7%, previously only 3% at the top of the year.
Those in the market for a new home are watching as an already expensive housing market is becoming even more costly.
Current homeowners are also impacted by higher mortgage rates as they are less likely to sell their homes if they financed at a much lower rate adding to the lack of inventory on the market.
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