U.S. New Home Sales Edge Up to 628,000 as High Rates Keep Permits Near Lows
Updated
Updated · HousingWire · Jul 28
U.S. New Home Sales Edge Up to 628,000 as High Rates Keep Permits Near Lows
3 articles · Updated · HousingWire · Jul 28
Summary
628,000 annualized new home sales in June left the market essentially range-bound, up 1.6% from May but 5.6% below a year earlier.
High mortgage rates are the main drag: builders have been using profit margins to buy down borrowing costs below 6%, but those margins are shrinking as rates hit yearly highs.
700,000 has repeatedly marked the top of the sales range and 600,000 the bottom for about a decade, leaving new-home demand near 2019 levels despite outperforming existing-home sales.
120,000 completed homes for sale is a key pressure point for builders, and with inventory progress limited and confidence weak, they remain reluctant to issue more permits or ramp up construction.