U.S. New Home Sales Drop 10.5% as High Mortgage Rates Hit Housing Demand

The U.S. housing market suffered another setback in July as high mortgage rates continued to keep potential buyers on the sidelines.

Sales of newly built single-family homes fell 10.5% from June to a seasonally adjusted annual rate of 607,000.

That was the weakest pace since January.

Sales were also 6.3% lower than a year earlier, adding to evidence that the housing market remains under pressure despite resilient economic growth elsewhere in the U.S. economy.

At the same time, builders are facing rising inventory and softer pricing.

The median price of a new home sold in July fell to $393,800, the lowest level in roughly four years.

The combination creates a clear picture.

Demand is weakening.

Inventory is building.

Prices are adjusting.

And mortgage rates remain high enough to prevent many buyers from taking advantage.

New Home Sales Fall to 607,000

The latest housing data show a sharp monthly decline.

New single-family home sales fell from a revised annualized rate of 678,000 in June to 607,000 in July.

… Continue reading the full article at the original source below.