New home sales sank 7.8% in May, despite a big drop in mortgage rates!!!
PUBLISHED TUE, JUN 25 2019 10:56 AM EDTUPDATED TUE, JUN 25 2019 1:14 PM EDT
Diana Olick
@DIANAOLICK
KEY POINTS:
Sales of newly built homes fell 7.8% in May from April and were 3.7% lower than in May 2018, according to the U.S. Census. This number represents signed contracts, not closings.
The average rate on the popular 30-year fixed mortgage started May at 4.29%, according to Mortgage News Daily, and then ended the month at 3.94%, a sizable savings on a monthly payment, especially given higher home prices.
“The lower mortgage rates haven’t unleashed a new wave of demand,” says Buck Horne, homebuilding analyst and senior vice-president at Raymond James.
https://www.cnbc.com/2019/06/25/new-home-sale...rates.html