New home sales unexpectedly climb in October despite steep mortgage rates

CapitalistPig hedge fund manager Jonathan Hoenig discusses housing prices tumbling and high mortgages rates as the Fed considers raising interest rates again.not seen in over a decade have rapidly eroded affordability.

New single-family home purchases rose 7.5% to a seasonally adjusted annual rate of 632,000 units, the Commerce Department reported Wednesday. Economists surveyed by Refinitiv expected new home sales — which account for a small percentage of total sales — to fall 5.5% last month.The median new house price climbed nearly 15.4% in October from the year-ago period to $493,000. That is also up more than 8% from September.

Sales of previously owned homes tumbled 5.9% in October from the prior month to an annual rate of 4.43 million units, according to data released Friday by the National Association of Realtors . That is slightly better than what economists were expecting, according to Refinitiv. US Federal Reserve Chair Jerome Powell speaks during a news conference on interest rates, the economy and monetary policy actions, at the Federal Reserve Building in Washington, DC, June 15, 2022.On an annual basis, home sales plunged 28.4% in October.

"More potential homebuyers were squeezed out from qualifying for a mortgage in October as mortgage rates climbed higher," NAR chief economist Lawrence Yun said in a statement. "The impact is greater in expensive areas of the country and in markets that witnessed significant home price gains in recent years."

There not being truthful there to expensive plus interest rates are to hi

There's often a long wait for the new build itself. I'd wager the majority of those sales were contracts signed when the rates were lower but those buyers got hit with higher rates (& were constantly locking in.) Rather than lose their EMD, they held on. The future will tell.

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