Search ForexCrunch

Data released today showed a bigger-than-expected decline in new home sales during April in the US. Analysts at Wells Fargo point out that sales are up 7% from a year ago helped by lower mortgage rates.

Key Quotes:  

“New home sales fell 6.9% from the upwardly revised 723,000- unit pace in March. However, sales are up 7.0% on a year-ago basis, and April’s drop marks the first monthly decline of 2019. More favorable buying conditions alongside lower mortgage rates this year have breathed some life back into home sales.”

“A shortage of more affordable homes likely played a role in the monthly drop, as sales of homes priced below $300,000 fell during April. Meanwhile, sales of homes priced above $300,000 increased during the month. Builder discounting of higher priced homes to clear rising inventories was likely a factor, which also had the effect of boosting the median price 8.8% year-over-year to $342,200. Months’ supply at the current sales pace rose to 5.9.”