US New Home Sales Unexpectedly Plunged In May To Lowest In A Year
Following yesterday’s slightly better than expected existing home sales (which was still a 4th straight monthly decline), analysts expected May new home sales to rebound very modestly from the 5.9% plunge in April… they were wildly wrong!
New home sales plunged 5.9% MoM in May and April’s crash was revised even lower (-7.8% MoM)…
This unexpected drop pushed the SAAR sales print to 769k (against expectations of 865k) – the lowest since May 2020
The median new home price is up 18.1% YoY to $374,400 (average selling price at $430,600) and is being blamed for the drop in sales as affordability collapses.
None of this should come as a surprise given the total collapse in homebuyer sentiment (and when did homebuilder sentiment actually count for anything?)…
With The Fed ‘talking about, talking about’ tapering and raising rates (at some point in the future), mortgage rates are already starting to rise…
Get back to work Mr.Powell.
Wed, 06/23/2021 – 10:06