New Home Sales Plunge In September As Mortgage Rates Resurged

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by Tyler Durden
Wednesday, Oct 26, 2022 - 02:09 PM

As a reminder, August saw new home sales SAAR explode a stunning 28% MoM as homebuyers rushed to buy on the brief respite in the explosion higher of mortgage rates...

Source: Bloomberg

...we suspect (as do analysts who forecast a 15.3% MoM decline) that things will not be as rosy in September and they were not.

Having revised down the August jump to 24.7% MoM, September home sales tumbled 10.9% MoM...

Source: Bloomberg

This leaves new home sales down 17.6% YoY to 603k SAAR - which is in line with the trough of the COVID lockdowns (and unchanged since July 2016)...

Source: Bloomberg

Despite the slump in sales, median home prices re-accelerated to $470,600...

Given the first chart above, we suspect this will not be the last time we new home sales plunge as mortgage rates rose to 7.16% last week, the highest level since 2001.