U.S. New Home Sales Hit Seven-month Low As Prices Soar

WASHINGTON, Aug 23 (Reuters) – New U.S. July, falling to their least expensive in seven months amid a surge in prices, raising concerns of a slowdown in the housing marketplace recovery. Coming on the pumps of data this month showing a tumble in home building and permits in July, the weak sales pace shows that housing could stay a drag on economic development in the 3rd quarter.

Daniel Silver, an economist at JPMorgan in NY. June’s sales pace was revised up to 630,000 units from the previously reported 610,000 units. Home sales in May weren’t as poor as previously reported also, taking a little of the sting from July’s report. New home sales, which take into account 9.4 percent of overall casing sales, are volatile month-to-month and are drawn from building permits.

July’s sales speed was below the second-quarter average of 613,000 units. Sales fell in the Northeast, West, and South, but increased in the Midwest. Wednesday In a separate survey on, week to a six-month low the Mortgage Bankers Association said applications for loans to buy a residence decreased last. A survey last month by Fannie Mae, the largest U.S. Housing subtracted nearly three-tenths of a share point from gross home product in the second quarter.

U.S. financial marketplaces were little transferred by the data as investors worried over comments by President Donald Trump threatening a government shutdown to secure financing for a border wall structure with Mexico, raising the specter of a hardcore-budget fight. Trump also said late … Read more