Mortgage Rate Increases Kill New Home Sales
New Home Sales
Just out – The Commerce Department reported U.S. sales of newly built home dropped 13.4 percent. That’s the lowest pace in nine months!
Up to this point, the new home sales rose 7 percent in the 12 months ending in July.
This drop in new home sales, I believe is a direct result of the fact that mortgage rates have risen a full percentage point since May.
The supply of new homes for sale at the end of July, in now the most in more than two years.
New Home Sales
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