New Home Sales Crash In May To Weakest Since 2018

After existing-home-sales rebounded modestly in May, hope was high that lower mortgage rates would spark a renaissance in the US housing market... but a shocking 7.8% crash in new home sales in May has blown that narrative out of the water.

Against expectations of a 1.6% MoM rise, new home sales plunged 7.8% in May to 626k, the weakest level since Dec 2018...

This collapse is happening despite the plunge in mortgage rates.

Median prices of new homes tumbled from $335.1K to $308K, lowest since Jan 2019...

Purchases of new homes fell in the Northeast and the West, where they dropped the most since 2010. Sales rose in the South and Midwest.

Along with the disappointing data from Case-Shiller, the rebound - on low rates - in US housing appears to be another dead cat bounce, not a phoenix.