After months of stay-at-home orders, home buyers broke lose in May and headed to the nearest model home. Sales of newly constructed homes jumped 16.6. percent last month as low mortgage rates and a shortage of resale homes drove buyers to new construction.
Single-family new home purchases rose to 676,000 on an annualized basis, according to the U.S. Department of Commerce. This is the highest rate since the start of the pandemic in February. Approximately 27 percent of the new homes sold last month had not yet begun to be built, 36 percent were under construction and 37 percent were completed.
With many Americans stating that they expect to continue working from home for the indefinite future, it is likely that properties with a home office space will be a priority for buyers.
Meanwhile, conventional no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.625 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.