The Washington Post
New-home sales decreased in June
Sales of new U.S. homes fell for the fifth time this year in June to a more than two-year low, as a mix of high prices and rising mortgage rates thwarted prospective buyers.
Purchases of new singlefamily homes decreased 8.1 percent to 590,000 annualized pace from a downwardly revised 642,000 in May, government data showed Tuesday.
The figures reflect a cooling market as the Federal Reserve raises interest rates to soften demand and tame decades-high inflation. The average rate on a 30-year mortgage is nearly double what it was a year prior. Coupled with high home prices, the run-up in borrowing costs has sidelined many potential buyers and triggered more canceled deals.
Other data Tuesday from the Conference Board showed the share of consumers planning to buy a home in the next six months dropped to 4.4 percent in July, the lowest in nearly seven years, from 5.7 percent.
The new-home sales report, produced by the Census Bureau and the Department of Housing and Urban Development, showed the median sales price of a new home rose 7.4 percent from a year earlier, to $402,400.