Today’s data showed that new home sales in August rose 3.5% to 629K. Analysts at Wells Fargo, point out that while August marks an improvement, sales over the past three months were also revised lower.
Key Quotes:
“New home sales rose 3.5% during August, however the gain comes with a net revision of 40,000 fewer sales over the prior three months. While sales are up 6.9% year-to-date, higher mortgage rates have slowed home buying this summer.”
“The median home price rose 1.9% over the past year to $320,000.”
“Solid job and income growth should keep sales trending higher. Deteriorating affordability and continuing worker and lot shortages make an upside breakout this year unlikely.”
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