New Home Sales at 5 Month Lows; Still Much Higher Year-Over-Year

August sales of newly constructed single-family homes failed to match the robust numbers from July but were significantly better than those a year earlier. The U.S. Census Bureau and Department of Housing and Urban Development said last month’s sales were at a seasonally adjusted annual rate of 675,000, the lowest since March and an 8.7 percent decline from July’s revised estimate (from 714,000) of 739,000 units. The August results were 5.8 percent higher than the 638,000-unit rate in August 2022. The August results did not meet the consensus estimates from either Econoday (699,000 annual units) or Trading Economics (700,000). Robert Dietz, chief economist for the National Association of Home Builders said of the report, “Builders continue to grapple with supply-side concerns in a market with poor levels of housing affordability. Higher interest rates (the average was over 7 percent) price out demand, as seen in August, but also increase the cost of financing for builder and developer loans, adding another hurdle for building.” On an unadjusted basis, there were 54,000 homes sold during the month, down from 61,000 in July. Over the first eight months of 2023, sales of new homes have totaled 474,000 compared to 466,000 at the same point last year. Sale prices have fallen slightly in the last 12 months. The median price in August was $430,300, $10,000 lower year-over-year. The average price has dropped from $530,800 to $514,000.

September 26, 2023 Download our Mobile App: Download our Mobile App: Housing News New Home Sales at 5 Month Lows; Still Much Higher Year-Over-Year August sales of newly constructed single-family homes failed to match the robust numbers from July but were significantly better than those a year earlier. The U.S. Census Bureau and Department of Housing and Urban Development said last month’s sales... (read more) Housing News Home Price Appreciation Continues Defying The Odds Home prices have resumed their upward climb despite mortgage rates that have doubled post-COVID. According to Craig J. Lazzara, Managing Director at S&P CoreLogic Case-Shiller Indices, the National Index for July hit an all-time high. That index... (read more) Mortgage Rate Watch Mortgage Rates Barely Budge at Long-Term Highs In terms of day-over-day changes, today's mortgage rate movement was forgettable. The average borrower wouldn't see much of a difference from yesterday's rates at the average lender. In both cases, those rates would be at or near the high... (read more) MBS Commentary Stronger Start, Weaker Finish, No Real Reason Stronger Start, Weaker Finish, No Real Reason Bonds improved in the overnight session, but reversed course the moment that the US bond market hit the 8:20am CME open. The selling wasn't intense, but it ... (read more) Rob Chrisman Data Mining, Digital Lending, Real Estate Database, Servicing Products; Conventional Conforming Program Shifts As if lenders and vendors don’t have enough other stuff to worry about, the budgetary standoff in the U.S. doesn't look like it will abate soon, raising the likelihood of the first government shutdown since 2019. Current funding for federal operation... (read more) Mortgage Rates 30 Yr. Fixed Rate 7.50% -0.01% Rate Change Points Mortgage News Daily 30 Yr. Fixed 7.50% -0.01 0.00 15 Yr. Fixed 6.81% +0.01 0.00 30 Yr. FHA 6.95% +0.01 0.00 30 Yr. Jumbo 7.51% +0.01 0.00 5/1 ARM 7.12% +0.01 0.00 30 Yr. VA 6.96% 0.00 0.00 Updates Daily - Last Update: 9/26 15 Yr. Fixed Rate 6.81% +0.01% Rate Change Points Freddie Mac 30 Yr. Fixed 7.19% +0.01 0.00 15 Yr. Fixed 6.54% +0.03 0.00 Updates Weekly - Last Update: 9/21 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 7.31% +0.04 0.72 15 Yr. Fixed 6.62% -0.10 1.08 30 Yr. Jumbo 7.32% +0.07 0.80 Updates Weekly - Last Update: 9/20 MBS / Treasuries UMBS 30YR 6.0 98.77 -0.19 Price / Yield Change MBS UMBS 6.0 98.77 -0.19 GNMA 6.0 99.09 -0.22 Pricing as of: 9/26 5:31PM EST 10 Year US Treasury 4.5520 +0.0210 Price / Yield Change US Treasury 2 YR Treasury 5.136 +0.007 5 YR Treasury 4.622 +0.010 7 YR Treasury 4.614 +0.015 10 YR Treasury 4.552 +0.021 30 YR Treasury 4.685 +0.037 Pricing as of: 9/26 5:31PM EST Latest Video Realtors and mortgage lenders are feeling a serious recession, says Fannie ... Redfin CEO explains why the housing market is taking a beating New home sales in August fell short of expectations European Central Bank to design new anti-fragmentation tool Around the Web CNBC Fed's Neel Kashkari sees 40% chance of 'meaningfully higher' interest rates Calculated Risk Blog New Home Sales decrease to 675,000 Annual Rate in August Eye on Housing Consumer Confidence Fall Again in September Reuters Moody's warns US government shutdown would be 'credit negative' Calculated Risk Blog Case-Shiller: National House Price Index Up 1.0% year-over-year in July; New all-time High cnn Government shutdown would leave the Fed flying blind CNBC Treasury yields hold steady as investors weigh interest rate path ahead Calculated Risk Blog Final Look at Local Housing Markets in August Eye on Housing New Homes Same Size but Higher Priced if Age-Restricted Calculated Risk Blog Update on Four High Frequency Indicators Calculated Risk Blog Comments on July Case-Shiller and FHFA House Prices CNBC 10-year Treasury rises as investors weigh interest rate outlook Calculated Risk Blog Housing September 25th Weekly Update: Inventory increased 1.8% Week-over-week; Down 5.2% Year-over-year

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