Higher rates in May tanked new home sales
of ConsumerAffairs
Home prices may not be falling but mortgage rates are. Freddie Mac reports the rate on the most popular rate slipped again this week as conditions continue to improve for homebuyers.
The 30-year fixed-rate mortgage continues to trend down, hitting the lowest level in almost three months, said Sam Khater, Freddie Macs chief economist. By historical standards, the economy is in good shape, and we expect rates to continue to come down over the summer months, bringing additional homebuyers back into the market.
The latest rates
The 30-year fixed-rate mortgage( FRM) averaged 6.86% as of June 27, down from last week when it averaged 6.87%. A year ago at this time, the 30-year FRM averaged 6.71%.
The 15-year FRM averaged 6.16%, up from last week when it averaged 6.13%. A year ago at this time, the 15-year FRM averaged 6.06%.
New home sales tank
Mortgage rates were higher last month and are being blamed for a big drop in new home sales in May. Census Bureau data show new home sales plunged 11.9% from April to a seasonally adjusted rate of 619,000.
Year-over-year, sales were down 16.5%. Mays new home sales were the lowest since November and came in significantly lower than housing economists predicted.
Despite a big drop-off in sales, prices continued to rise. The median sales price of new houses sold in May was $417,400. The average sales price was $520,000.
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Posted: 2024-06-27 16:16:55
