Following yesterday’s disappointing existing home sales print, this morning sees new home sales confirm the disappointment with a mere 0.6% MoM rise (well below the 4.3% MoM rebound expected after tumbling 11.6% MoM the month prior)…
Source: Bloomberg
That is the worst YoY decline in new home sales since Oct 2024, leaving the total SAAR at 627k – hovering near post-COVID lockdown lows and well below expectations…
Source: Bloomberg
The Median new home prices plunged in June (near 5 year lows), now well below that of existing homes…
Source: Bloomberg
And for those hoping for rate-cuts to fix all this, think again…
Source: Bloomberg
Rate cuts have steepened the yield curve and pushed mortgage rates up; but as the chart above shows, the relationship between home sales and actual mortgage rates has decoupled in recent weeks…
So be careful what you wish for.
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