U.S. Housing Market Battles Economic Uncertainty Amid Modest Sales Increase

U.S. existing home sales rose slightly in November as mortgage rates eased, but economic uncertainty is preventing a robust recovery. Inventory of previously owned homes hit an eight-month low, constraining options. Despite some regional sales growth, the market remains stagnant amid affordability concerns and a sluggish labor market.

U.S. existing home sales saw a modest increase in November, reflecting a slight easing in mortgage rates but persisting economic uncertainty. According to a report from the National Association of Realtors, inventory for previously owned homes dropped to an eight-month low, constraining options for buyers.

Home sales grew by 0.5% to a seasonally adjusted annual rate of 4.13 million units, slightly below expectations. The Midwest and West regions showed less progress compared to the Northeast and South. Rising mortgage rates, driven by changes in U.S. Treasury yields, continue to weigh down the market.

Market challenges are compounded by a sluggish labor market and rising consumer prices, affecting consumer sentiment. The median home price increased 1.2% year-over-year to $409,200. Experts suggest significant mortgage rate declines are needed for a meaningful housing market recovery.

(With inputs from agencies.)