A new report from the Department of Commerce's Census Office revealed this week that new home sales in the United States decreased by 10. 5 % in July from the 6. 3 % recorded in June. This is in response to a recent report that mortgage rates were to 6. 65 % and a paralyzed construction sector.
Although the data tends to be volatile month by month, the annual rate was 607,000 units seasonal; the figures presented represent the number of closures of contracts for the sale of new homes amid a crisis of affordability that continues to drive potential buyers away from the market.
High debt prices remain a key element to maintain the real estate market in a protracted adjustment despite the statement that housing costs decreased by 0. 9 % to$ 393,800 in July from the previous month.
In this regard, Jake Krimmel, senior economist at Realtor. com, explains that mortgage rates continue to fluctuate in line with the 10-year bond's craze, and that the market will continue to be under pressure as long as it is above 4 %.
According to data from the Census Office of the Department of Commerce, the construction industry is also a significant contributor to the sector. In July, a marked decrease of 15. 7 % interannual in the design of single-family casing was reported, which restricts the market's inventory in the face of high demand, ultimately causing the prices of real estate to rise.
