For the first time in nearly five months, the sales rate of newly constructed homes has declined. September saw a 3.4 percent decline from the prior month to a seasonally adjusted annual rate of 959,000 units. This latest data comes from the U.S. Census Bureau and the Department of Housing and Urban Development.
Despite last months drop in sales, brand new homes are still selling at a higher rate than they did last year. Compared to September 2019, new home sales are 32.1 percent higher and selling at a faster pace. There were 75,000 new homes sold during the month compared to 82,000 in August and 56,000 in September 2019.
According to industry experts, the biggest factor holding new home sales back is simply a lack of supply. Home builders are struggling to keep prices low amid rising costs and bring new homes on to the market quick enough.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 percent.
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