Overview
- The Commerce Department reported on May 28 that new single-family home sales fell 6.2% from March to a 622,000 seasonally adjusted annual rate and were down 11.3% from April last year.
- Available new‑home inventory rose to 489,000 units and the months' supply increased to 9.4, a measure that shows how long current listings would take to sell at the current pace.
- Mortgage borrowing costs pushed higher this spring, with the 30‑year fixed rate rising from about 5.98% in late February to the mid‑6% range by April, which reduced buyer affordability.
- Builders pulled back as single‑family starts and permits declined in April and residential investment has contracted for several quarters, limiting near‑term new construction.
- For buyers this means more choice but weaker incentives for builders to break ground, and for the wider economy the slowdown in homebuilding could dampen growth and local construction jobs.