Investing.com - High prices, a shortage of houses and higher mortgage rates are taking a toll on the housing market.Home sales have slumped in recent months as buyers struggle to find a house they can afford. The interest rate on a 30-year fixed mortgage is now 4.45%, a four year high.The median price of a new house is up almost 10% from a year ago to almost $327,000.And supply is also low, especially at the low end of the market, which is dominated by first-time buyers.By one industry metric, it would take just 3.4 months of sales to exhaust the supply of available homes.No wonder then that sales of new single-family homes have fallen three months in a row. Existing home sales, which account for 90% of the market, have declined in two of the three past months. Analysts say the squeeze will worsen in the coming months during the peak Spring selling season.
