Reply To: Bond Traders Weekly Outlook: Yield Curve Pressured Ahead of September Data Drop


New home sales increased 4.4% month-over-month in July to a seasonally adjusted annual rate of 714,000 units (consensus 701,000) from a downwardly revised 684,000 (from 697,000) in June. On a year-over-year basis, new home sales were up 31.5%.

The key takeaway from the report is that new home sales activity, which is measured on signed contracts, was driven by sales of more moderately priced homes as higher building costs crimped the supply of lower-priced homes while higher mortgage rates contributed to affordability pressures across the spectrum.