Sales of newly built homes tank in April, as prices and interest rates rise

The average rate on the 30-year fixed mortgage ended March was in the high 6%-range, but then shot up to 7.5% during the April.

Adding to that, the median price of a new home sold in April was $433,500, 4% higher than it was in April 2023. Some of that is due to the mix of homes selling, which is mostly on the higher end of the market. Those buyers are not as influenced by mortgage rates, as they often use all cash. In the first quarter of 2024, 38% of a median household income nationally was needed to make the mortgage payment on a median priced new single-family home, according to a new index launched Thursday by the National Association of Home Builders and Wells Fargo. Low-income families, which it defines as those earning just 50% of the area's median income, would have to spend 77% of their earnings to pay for the same new home.

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