U.S. February New Home Sales - Trend showing little direction
February new home sales at 662k are almost unchanged from 664k in January and suggests a fairly stable picture at present, with the future outlook dependent on Fed policy.
Trend moved up in early 2023 and lower in late 2023 in response to moves in mortgage rates, but a recent pick up as mortgage rates moved off their 2023 highs does not seem to be gaining much momentum. NAHB homebuilders’ data and February’s existing home sales report had been hinting at stronger data but other housing sector data such as the MBA’s and pending home sales were less impressive.
Price data for new homes looks quite soft with the median down by 3.5% on the month and by 7.7% yr/yr, versus a 4.0% yr/yr decline in January.
The average fell by 7.3% on the month and by 2.8% yr/yr correcting what looked like erratically strong data in January.
