New Home Sales Plummet in July

Rising rates may be a factor in decreased home sales for the month and, some say, a potential threat to future sales. Freddie Mac reports 30-year fixed-rate mortgages averaged 4.56 percent for the week ending August 22.  

“It’s definitely a rate shock,” said Doug Duncan, chief economist at Fannie Mae in Washington. “You could see another month or two of weak sales or it could go longer. This is a sustainable recovery, but we’ve also said it’s not robust. Along the way, there will be some hiccups. This is certainly a hiccup.”Median price of new homes increased to $257,200 with the average sales price at $322,700.” 

July sales fell from June levels by 5.7 percent in the Northeast, 12.9 percent in the Midwest, 13.4 percent in the South and 16.1 percent in the West region.