New Home Sales Crash In July Following Plunge In Household Formations

New Home Sales crashed in July (down a shocking 9.4% MoM compared to expectations of unchanged) following the collapse of household formations in June.

The 8.9% year-over-year plunge in home sales is the worst since June 2014...

As it appears higher mortgage rates, stagnant wages, and soaring prices have finally caught up to one another.

 

As a reminder, household formation collapsed in June...

 

Probably the right time to be hiking rates some more.