from swj: New-Home Sales Increase 3.2% As Buyers Rush for Good Rates
An INTERACTIVE JOURNAL News Roundup
WASHINGTON -- New-home sales climbed in June despite rising
mortgage rates, as Americans rushed to secure loans before any further
increases.
The Commerce Department said Friday sales
of new single-family homes rose 3.2% to a
seasonally adjusted annual rate of 929,000.
The increase follows a 4.2% drop in May, with sales revised upward to
901,000 from 888,000.
The June rebound topped the forecasts of economists, who had expected
a 900,000 rate.
The surprisingly strong results, coupled with the sharp revision to the May
data, shows the housing market remains robust. Analysts said part of the
increase can likely be attributed to consumers who rushed into the housing
market in response to the higher mortgage-rate environment.
Although rates edged above the 7% level earlier this year, the Mortgage
Bankers Association purchase index rose 7.4% in June, while the National
Association of Home Builder's housing market index maintained a
near-record level.
The average price of a home jumped to a record $196,500 in June, while
the median price of a home remained at a near-record $157,000.
By region, sales gains were strongest in the West and South, up 12.8%
and 6.7% respectively. Sales in the South reached a record 444,000 level,
the Commerce Department said.
New home sales fell 11.3% in the Northeast, while the Midwest posted an
11.7% decline. |
