Even with the decline, sales have rebounded over the past year thanks to limited inventory of existing homes.
That explains why homebuilder sentiment is at the highest level in over a year, and contractors are applying to break ground on more single-family projects.
The Federal Reserve is anticipated to raise interest rates to the highest level in more than two decades later on Wednesday, which will likely keep mortgage rates elevated in the near term. There were 432,000 homes for sale as of the end of last month, in line with previous readings this year. That represents 7.4 months of supply at the current sales rate.
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