Winter Is Coming … For Housing! New Home Sales Rise Only 7% MoM With Falling Mortgage Rates

by confoundedinterest17

The Census Bureau reports New Home Sales in June were at a seasonally adjusted annual rate (SAAR) of 646 thousand. That is up 7% over May NHS.

That is the good news.

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Now for the less good news.

First, new home sales are up … to pre-1995 levels. That is, pre-house price bubble (orange line). 

Second, despite hopes that decling mortgage rates would stimulate a larger rise in new home sales, their hopes were shattered.

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Even worse, there is clear pattern to YoY new home sales. Winter is coming!

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Federal Reserve Chair Jerome Powell attempting to keep markets going.

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