New home sales fell 5.6% month-over-month in October to a seasonally adjusted annual rate of 679,000 units (consensus 720,000) from a downwardly revised 719,000 (from 759,000) in September. On a year-over-year basis, new home sales were up 17.7%. Noticeably new home sales activity slumped in October despite a big drop in median and average selling prices. The latter had to do with a large decline in sales in the high-priced West region. What is clear is inflation and high mortgage … Continue reading “US New Home Sales Slump 5.6% in October, Downwardly Revised for September”
US Existing Home Sales Fell 4.1% in October at Slowest Pace Since August 2010
High mortgage rates, high selling prices, and limited inventory saw US existing home sales at the slowest pace of sales since August 2010. The National Association of Realtors said the sales decreased 4.1% month-over-month in October to a seasonally adjusted annual rate of 3.79 million (consensus 3.90 million) from a downwardly revised 3.95 million (from 3.96 million) in September. Sales were down 14.6% from the same period a year ago. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 7.44% … Continue reading “US Existing Home Sales Fell 4.1% in October at Slowest Pace Since August 2010”
NAHB Housing Market Index Slumps Further in November Back to Lowest Since December 2022
NAHB/Wells Fargo housing market index slump continues, falling for a fourth month by 6 points to 34 in November 2023, significantly below the market’s expected level of 40. The index is at its lowest point since December 2022. The fall has been swift as affordability has plummeted with high interest rates and inflation. Just back in July we saw the highest reading at 56 in this cycle and was just the second time that sentiment levels have surpassed the midpoint … Continue reading “NAHB Housing Market Index Slumps Further in November Back to Lowest Since December 2022”
U.S. Pending Home Sales Rose 1.1% Versus -1.8% Expected Again Defying Analysts
US pending home sales rose unexpectedly by 1.1% versus -1.8% expected for the month of September 2023. The rise comes despite soaring mortgage rates with unprecedented rate hikes delivered by the Fed. However, limited supply and builder incentives spurred the sales. For perspective year-on-year, pending home sales are down by 11 percent in September of 2023 over the same month in the previous year. Although at a slower rate than the previous month and marking a 28th straight month of … Continue reading “U.S. Pending Home Sales Rose 1.1% Versus -1.8% Expected Again Defying Analysts”
US Existing Home Sales Fell 2.0% in September to Lowest Since October 2010
US existing home sales from the National Association of Realtors decreased 2.0% month-over-month in September to a seasonally adjusted annual rate of 3.96 million. Sales retreated 15.4% from one year ago. Existing-home sales rose in the Northeast but receded in the Midwest, south, and West. All four regions registered year-over-year sales declines. Inventory of existing homes for sale climbed 2.7% from the prior month to 1.13 million at the end of September, or the equivalent of 3.4 months’ supply at … Continue reading “US Existing Home Sales Fell 2.0% in September to Lowest Since October 2010”
NAHB Housing Market Index Slumps Further in October as Interest Rates Soar
NAHB housing market index fell for a third month to 40 in October 2023 (consensus 45.0) following a revised 44 in September (from 45). This is the lowest level since January 2023, July was the highest reading at 56 in this cycle and was just the second time that sentiment levels have surpassed the midpoint of 50 since July 2022. Mortage rates since late September are up nearly 40 basis points to 7.57%, according to Freddie Mac. Single-family sales current … Continue reading “NAHB Housing Market Index Slumps Further in October as Interest Rates Soar”
US New Home Sales Declined 8.7% in August as Mortgage Rate Strangle Affordability
New home sales declined 8.7% month-over-month in August to a seasonally adjusted annual rate of 675,000 units (consensus 695,000) from an upwardly revised 739,000 (from 714,000) in July. On a year-over-year basis, new home sales were up 5.8%. Rising mortgage rates create added affordability pressures. Reality is though with rates over 7.2%, and inflation high- and real-income hurt lower affordability and supply pressures remain for many prospective buyers. There is some new home sales activity being helped by the tight … Continue reading “US New Home Sales Declined 8.7% in August as Mortgage Rate Strangle Affordability”
US Existing Home Sales Fell 0.7% in August, High Mortgage Rates and House Prices Impacting
US existing home sales from the National Association of Realtors decreased 2.2% month-over-month in July to a seasonally adjusted annual rate of 4.07 million (consensus 4.15 million) from an unrevised 4.16 million in June. Sales were down 16.6% from the same period a year ago. Inventory of existing homes for sale remains extremely tight, due partially to the strength of the labor market (and ability to work remotely) and affordability with higher mortgage rates. According to Freddie Mac, the 30-year fixed-rate … Continue reading “US Existing Home Sales Fell 0.7% in August, High Mortgage Rates and House Prices Impacting”
US Housing Starts Fell 11.3% in August to the Lowest Level since June 2020
US housing starts declined 11.3% in August to a seasonally adjusted annual rate of 1.283 million units (consensus 1.435 million). New US home construction fell in August to the lowest level since June 2020. Single unit starts were down 4.3% to a seasonally adjusted annual rate of 941,000. Higher financing costs are creating headwinds for builders and preventing activity from being stronger in a supply-constrained housing market. US building permits however increased 6.9% to 1.543 million (Briefing.com consensus 1.442 million) … Continue reading “US Housing Starts Fell 11.3% in August to the Lowest Level since June 2020”
NAHB Housing Market Index Falls in September as Mortgage Rates Crush Buyers Confidence
NAHB housing market index fell for a second month to 45 in September 2023, the lowest in five months, from 50 in August and below forecasts of 50. July which was the highest reading at 56 in this cycle and was just second time that sentiment levels have surpassed the midpoint of 50 since July 2022. Mortage rates are over 7% (per Freddie Mac). Current single-family home sales fell to to 51 from 57 and prospective buyers dropped 5 points … Continue reading “NAHB Housing Market Index Falls in September as Mortgage Rates Crush Buyers Confidence”