Low Rates Continue to Stimulate New Home Sales

by Marilou Moursund on August 24, 2016

in housing,interest rates

New home sales in July were up 12.4% from June.  This annualized level of sales is the strongest in nine years.  From the linked UsA Today article:

New-home sales surged in July to the highest level in almost nine years as strong demand amid low interest rates and low existing inventory helped boost the housing market.

Sales of new single-family houses jumped 12.4% from June to a seasonally adjusted annual rate of 654,000, the highest level since October 2007. Sales were 31.3% above their showing a year ago, the Commerce Department reported Tuesday.

Best Buy surprised on earnings to the upside a couple of days ago, and the strength was due to appliances.  Both Home Depot and Lowe’s remain near their highs, so it looks like the U.S. consumer is continuing to prioritize home and hearth.

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