Sales of New US Homes Jumped in May, Marking First Gain This Year [Business News Network (BNN) (Canada)]
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Source: Business News Network
Purchases of new single-family homes increased 10.7% to an annualized 696,000 pace, the first gain this year, government data showed Friday. The figure followed an upwardly revised 629,000 in April. The median forecast in a Bloomberg survey of economists called for a 590,000 rate. While growing affordability concerns have limited demand since the start of the year, many Americans still have the desire and wherewithal to buy a home. The pickup in sales may also reflect some buyers locking in their mortgage rate in anticipation of even higher borrowing costs. Earlier this month, the average rate for a 30-year loan posted its largest one-week increase since the 1980s. It's risen even further since then. The new-home sales report, produced by the Census Bureau and the Department of Housing and Urban Development, showed the median sales price of a new home rose 15% from a year earlier to a $449,000. At the current sales pace, it would take 7.7 months to exhaust the supply of new h
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