Community Real Estate

New home sales fall amid high mortgage rates

Source: Market Watch

Sales of newly built homes in the U.S. fell in August as interest rates and home prices stayed elevated, dampening buyer demand. U.S. new-home sales fell 8.7% to an annual rate of 675,000 in August, from a revised 739,000 in the prior month, the Commerce Department reported this week. Overall, sales of new homes are up 5.8% compared to last year.

Over the last few months, home builders have been the biggest beneficiaries of a lack of resale inventory, but as mortgage rates stay high and credit conditions tighten, even they have begun to feel uncertain about their future. In confidence surveys, builders have indicated their nervousness over the strength of buyer demand. Confidence fell to a five-month low in September. The 30-year mortgage was at 7.51% as of Monday afternoon, and inching higher, according to Mortgage News Daily.

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