US New Home Sales Crashed In March
Analysts expected a 3rd straight month of declines in new home sales in March, but they did not see this bloodbath coming. New Home Sales crashed 8.6% MoM (vs -0.6% exp). That drags new home sales down 12.6% YoY.
This is the biggest drop since April 2021 and this is the start of the busiest season in the year for housing. This is the lowest SAAR since Nov 2021...
Finally, there is no ignoring the fact that home sales are going to be affected by the record surge in mortgage rates in the last month or so...
DRHorton claims that 10% of buyers will be impacted BUT also claims that there are plenty more behind them ready to bid for new homes...
DHI on rates, can rates, and potential risk to backlog pic.twitter.com/CDYDWDdQ8b— Steads (@winsteadscap) April 26, 2022
We shall see!