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Sales of previously owned homes in the U.S. fell more than expected in July, resulting in the biggest supply of unsold homes in more than a decade, as higher mortgage rates discouraged would-be home buyers.
Purchases declined 4.1 percent last month to an annual rate of 6.33 million, from 6.6 million in June, the National Association of Realtors said today in Washington. Sales fell 11.2 percent compared with a year earlier.
Rising mortgage rates, following a surge in prices during the five-year housing boom, have made home purchases less affordable than at any time in almost two decades, according to the Realtors' group.
The Federal Reserve, which this month paused after two years of interest rate increases, is counting on an orderly contraction in housing to help slow growth. |
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