U.S. New Home Sales Fall to Five-Month Low; Median Prices Increase 4.7% in July
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New home sales in the U.S. declined to the lowest level in five months, the U.S. Commerce Department reported Tuesday morning.
Data shows a 0.7 percent drop in new home sales to an annual pace of 298,000 in July, down from 300,000 the prior month. The reading for June was revised lower from an initial reading of 312,000.
Economists on the Street were looking for a more robust number of 310,000.
To put it bluntly: with foreclosures piling up, builders are less inclined to start new projects.
Maybe on a better note, the median price for housing in July increased 4.7 percent from the same month last year to $222,000. At the end of the month there were 165,000 new houses on the market, keeping the supply of houses in the market at 6.6 months worth, flat from June. Sales dropped in two of the four U.S. regions, led by a 7.4 percent slump in the South that was the biggest since August 2010. Purchases declined 5.9 percent in the West.
But there may be no better time to buy than now. Mortgage rates at the week ended August 18th were 4.15 percent, down sharply from 4.42 percent in the same week last year.
U.S. markets are positive Tuesday: The Dow is up 141 points, the Nasdaq is up 40 and the S&P 500 is up 16.
Data shows a 0.7 percent drop in new home sales to an annual pace of 298,000 in July, down from 300,000 the prior month. The reading for June was revised lower from an initial reading of 312,000.
Economists on the Street were looking for a more robust number of 310,000.
To put it bluntly: with foreclosures piling up, builders are less inclined to start new projects.
Maybe on a better note, the median price for housing in July increased 4.7 percent from the same month last year to $222,000. At the end of the month there were 165,000 new houses on the market, keeping the supply of houses in the market at 6.6 months worth, flat from June. Sales dropped in two of the four U.S. regions, led by a 7.4 percent slump in the South that was the biggest since August 2010. Purchases declined 5.9 percent in the West.
But there may be no better time to buy than now. Mortgage rates at the week ended August 18th were 4.15 percent, down sharply from 4.42 percent in the same week last year.
U.S. markets are positive Tuesday: The Dow is up 141 points, the Nasdaq is up 40 and the S&P 500 is up 16.
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