New Home Sales Tumble In March, Despite Plunging Mortgage Rates

It seems the collapse in the stock market and overall global sentiment in the last few weeks has overwhelmed any 'value' seen from leveraging lower mortgage rates. New Home Sales plunged 4.4% MoM (from an upwardly-revised 10.5% MoM surge in February)

Source: Bloomberg

Based on signed contracts in February, when COVID-19 was on the radar but nothing like it was in March.

However, the 765k SAAR for new home sales is near the highest since 2007 (Purchases in January were revised up to an 800,000 rate)...

Source: Bloomberg

The median price of new homes reached a new record high in March (Up to $345,900 from $325,300)...

So now we wait with baited breath for March signings - April data - when the real virus crisis hit.