New home sales drop to two-year low

Single-family home sales fell to their lowest in over two years last month, the latest sign among many that rising mortgage rates and higher prices have dampened demand for housing.

The Commerce Department announced that home sales dropped 8.1% to a seasonally adjusted annual rate of 590,000 units in June, the lowest recorded since April 2020 and far below economist forecasts of 660,000 units. May sales have since been revised down to 642,000 units from the previously reported 696,000 units.

Sales declined by 17.4% from May last year and peaked at a rate of 993,000 units in January 2021 – the highest level in 15 years, Reuters reported.