Newly released data from HUD show sales of new single family homes declined over 13% in July as higher mortgage rates prompted a pause in buying activity.
Rick Judson, Chairman of the National Association of Home Builders said, “The drop off in sales in July is in part a reflection of buyers’ reaction to the recent uptick in mortgage rates…”
Their Chief Economist David Crowe said, “…there is still a great deal of pent-up demand for homes in markets nationwide, and builders continue to report improving consumer interest. This suggests that what we’re seeing is a temporary a pause, and that buyers will return to the market once they are confident that the higher rates are here to stay.”
Every region in the country recorded lower new home sales in July. Meanwhile, the inventory of new homes for sale edged up to 171,000 units in July which is a 5.2 month supply at the current sales pace.