The Housing Market Is Grinding To A Halt

Homebuyer confidence has collapsed to an all time low.

US New Home Sales Unexpectedly Tumbled In June As Homebuyer Confidence Crashes To Record Low

BY TYLER DURDEN

WEDNESDAY, JUL 24, 2024 - 11:10 AM

After a disappointing dump in existing home sales in June, new home sales just confirmed the slowdown, dropping 0.6% MoM (notably below the 3.4% MoM expected) and also saw a major downward revision in May from -11.3% MoM to -14.9% MoM. That leaves new home sales down 7.4% YoY...

Source: Bloomberg

That shift dragged the new home sales SAAR down to 617k - basically unchanged since 2016...

Source: Bloomberg

While the median new home price rose in June, it remains below the median existing home price...

Source: Bloomberg

It appears the homebuilder subsidy fad is wearing off as mortgage rates show no signs of easing significantly...

Source: Bloomberg

Of course, none of this should be a surprise as homebuyer confidence has collapsed to an all-time record low...

Source: Bloomberg

Will cutting rates help?