Sales of newly built homes hit 13-year high

Sales of newly built homes hit 13-year high

Sales of newly built homes hit 13-year high
Even as the coronavirus pandemic wages on, Americans continue to snatch up newly constructed homes. According to new data from the U.S. Census Bureau and the Department of Housing and Urban Development, new home sales rose for the third consecutive month in June reaching a seasonally adjusted annual rate of 776,000 units. This is the highest rate since 2007.

The current new home sales pace is 13.8 percent higher than it was in May and 6.9 percent greater than the same month last year.

Demand for newly built homes is growing as inventory for pre-owned homes remains chronically low. While new construction tends to have a heftier price tag, buyers are finding historically low mortgage rates make these homes more affordable.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 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.