Housing market outlook: US new-home sales jumped nearly 17% in May - Business Insider

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Housing market outlook: US new-home sales jumped nearly 17% in May - Business Insider
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US new-home sales jumped nearly 17% in May, more than economists expected, as buyers rushed back to the market

Economists surveyed by Bloomberg had expected a jump to an annualized rate of 640,000. In addition, the May rate is nearly 13% higher than the same month one year ago.

Homebuyers are flocking back to the housing market after months-long coronavirus pandemic lockdowns, fueled by low mortgage rates. Homebuyers are rushing back to the housing market fueled by record-low mortgage rates as the economy reopens from months-long lockdowns to contain coronavirus. Sales of new single-family homes jumped 16.6% in May from April, to a seasonally adjusted annualized pace of 676,000,. The median economist estimate was for 640,000, according to Bloomberg data.

In addition to a larger-than-expected monthly surge, May sales were nearly 13% higher than a year ago. As the US economy reopens, people are flocking back to the housing market in droves — the rosy sales are a rebound from three months of declines ending in April.

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