U.S. Housing Market Shifts Gear: Mortgage Rates Dent New Home Sales
In a notable development, new single-family home sales in the United States have hit a five-month low, signaling mounting pressure on the housing market due to elevated mortgage rates, as per the latest Census Bureau data.
The recently released data reveals a substantial 8.7% decline in the purchase of new single-family homes, bringing the total to 675,000 for the month of August. This downturn follows a much more robust performance in July, where sales reached an impressive 739,000 units.
Commenting on these figures, Doug Duncan, Chief Economist at Fannie Mae, pointed out, ‘New single-family home sales experienced an 8.7% dip in August, resulting in a seasonally adjusted annualized rate (SAAR) of 675,000. However, it’s essential to note that this followed a substantial upward revision of 25,000 for the July figures, bringing them to an impressive 739,000 SAAR units. July marked the highest level of sales since February 2022.’
The increased pressure on the market is reflected in the supply of listings as well. The months’ supply has surged by eight-tenths to 7.8, reaching its highest point since March. Additionally, the supply of new homes available for purchase has increased by 1.2%, totaling 436,000 units. Notably, the inventory of completed homes available for sale has continued to climb and has now reached its highest level since April 2020.”
This expanded version provides a more in-depth analysis of the situation, highlighting the fluctuations in sales, the impact on the supply of listings, and the insights of an expert economist.
