Sales of new single-family homes plummeted in April as rising mortgage interest rates and skyrocketing house prices took a toll on the market. “[It's] a clear recession warning,” said the chief economist for the National Association of Home Builders.
05/24/2022 01:07 PM EDTSales of new single-family homes plummeted in April as rising mortgage interest rates and skyrocketing house prices took a toll on the market.Census Bureau data“The April drop for new home sales is a clear recession warning,” said Robert Dietz, chief economist for the National Association of Home Builders.
The median sales price of new houses sold last month was $450,600, 19.6 percent higher than a year earlier. The average rate on a 30-year fixed mortgage was about 5.3 percent last week, according to Freddie Mac, up from 3.2 percent in the first week of January. “The combination of higher prices and increased interest rates are generating a notable slowing of the housing market,” Dietz said. “While the nation needs additional housing, home sales are slackening as tightening monetary policy continues to put upward pressure on mortgage rates and supply chain disruptions raise construction costs.”
There were an estimated 444,000 new homes for sale in April — a supply of nine months at the current sales rate, compared with 4.7 months a year earlier.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Art values are booming as New York auctions make billions of dollars in salesThe market for high-end art seems to be booming. Total sales for Sotheby's, Christie's and Phillips have hit more than $2.5 billion for 2022 already — led by works of Andy Warhol, Pablo Picasso and more.
Read more »
Photos, video released of rodents that infested Jacksonville elementary school, forced cafeteria closure in AprilThe cafeteria at Duval County’s Cedar Hills Elementary School was shut down as maintenance staff and exterminators work to solve a rodent infestation at the campus.
Read more »
What to know about soaring catalytic converter thefts as Houston bans some salesCatalytic converter thefts have soared in Houston and across the country since the pandemic started, leaving millions of car owners facing repairs that can cost hundreds or thousands of dollars. Here's what you need to know.
Read more »
The Memorial Day Mattress Sales You Don't Want to Pass UpThe perfect excuse for an upgrade.
Read more »