U.S. New Home Sales Fell in July to Lowest Since May 2020
2022.08.23 17:30
By Geoffrey Smith
Investing.com — New single-family home sales fell to their lowest in over two years in July, rounding off a dismal series of monthly numbers for a U.S. housing market dominated by rising prices and mortgage rates that have made homes unaffordable for many.
The Census Bureau said that only 511,000 were sold in the month, down from 585,000 in June (a number that was also trimmed by 5,000 from its initial estimate). That was barely half the number seen at the peak of the pandemic, when the need for more space to allow remote working drove a frenzy for bigger suburban houses.
The news corroborates what has become a familiar narrative in recent months from the housing market, which has been the first sector in the economy to feel the effect of the Federal Reserve’s repeated interest rate hikes. Housing starts and building permits also both fell on the month, as did sales of existing homes.
The Census Bureau’s numbers indicated that affordability, rather than the scarcity of supply, was the chief problem last month. The number of houses for sale increased again across all categories to their highest since April 2008.
The slowdown, meanwhile, appears to be affecting an ever-broader cross-section of the economy. A business survey compiled by S&P Global, released earlier, showed U.S. manufacturing activity falling to its lowest in over two years this month.
