New Home Sales Surge In August (As Rates Tumbled)

After July's collapse, August new home sales were expected to rebound (like existing homes - biggest jump in two years) and surprised to the upside (rising 7.1% MoM against expectations of a 3.8% rebound). However, the huge 12.8% drop in July was revised up to a -8.6% MoM drop.

Source: Bloomberg

Purchases of new homes increased in the South and West.

The supply of homes at the current sales rate dropped to 5.5 months, from 5.9 months in July.

The report showed more expensive homes, those priced $400,000 and up, represented a larger share of unadjusted sales in August. The share of new houses with asking prices below $400,000 eased.

The median sales price increased 2.2% from a year earlier to $328,400.

Of course this data is from before rates started to turn higher and mortgage applications tumbled...

Source: Bloomberg

So what happens next?

Source: Bloomberg

Get back to work Mr.Powell.