Published: 2024-05-23T14:18:25.000Z
U.S. April New Home Sales - Losing momentum
Senior Economist , North America
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April new home sales at 634k are weaker than expected, with March’s unexpectedly strong 693k outcome revised down to 665k, with April down 4.7% after a revised 5.4% March increase. While the decline does not fully reverse March’s increase housing data mostly is suggesting a loss of momentum.
The new home sales data follows signs of slowing in April housing permits, a decline in April existing home sales and signs of peaking in housing permits data for April. The loss of momentum is probably related to reduced expectations of Fed easing and consequent increases in mortgage rates.
Prices slipped on the month, the median by 1.4% after a 5.2% March increase and the average by 4.1% after a 4.2% March increase. Yr/yr data gives a modestly positive picture, the median at 3.9% versus 0.1% in March and the average at 1.0% versus 1.5% in March.