US New Home Sales Drop 6.2 Percent in April
Sales of new single-family homes dropped to an annualized rate of 622,000 units in April as borrowing costs increased. The median house price rose 2.2 percent to $422,500 while housing inventory reached its highest level since the previous year.
United States new home sales fell 6.2% in April to a seasonally adjusted annual rate of 622,000 units. Freddie Mac data showed the average 30-year fixed-rate mortgage jumped from 5.98% in late February to 6.46% at the start of April. Elevated mortgage rates and rising prices continue to squeeze buyer affordability and stall residential investment.
### Mortgage Rates Stifle Market Momentum New home sales, which track contract signings, dropped 11.3% on a year-over-year basis in April. The Commerce Department reported that sales tumbled in the Northeast, South, and Midwest, while the West recorded an increase.
