US New-Home Sales Slump in May Due to Elevated Prices and Mortgage Rates

Reported 9 months ago

New-home sales in the US decreased by 11.3% in May to a 619,000 annual pace, marking the slowest rate since November. The decline is attributed to high prices and mortgage rates challenging the housing market. Despite mortgage rates dropping below 7% in mid-June for the first time since March, they remain more than double compared to the end of 2021. Although inventory levels are increasing, helping affordability, the shortage of new homes still persists in the US, indicated by builders like Lennar Corp. and KB Home addressing affordability issues by offering price breaks or lower mortgage rates to maintain orders.

Source: YAHOO

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