U.S. new-home sales plunge to lowest since start of pandemic
![U.S. New-Home Sales Decline for First Time in Three Months](https://www.propertyloans.biz/wp-content/uploads/2022/05/u-s-new-home-sales-plunge-to-lowest-since-start-of-pandemic.jpg)
Rebecca Noble/Bloomberg
Sales of new U.S. homes plummeted in April by the most in nearly nine years, dented by the combination of high prices and a steep climb in mortgage rates.
Purchases of new single-family homes decreased 16.6% to an annualized 591,000 pace, the weakest since April 2020, government data showed Tuesday. The figure fell well short of all estimates in a Bloomberg survey of economists, which called for a 749,000 rate.
Home ownership is becoming increasingly out of reach for many Americans, as a rapid run-up in mortgage rates collides with record prices. The average rate on a 30-year mortgage was 5.25% last week, up from around 3% at the end of 2021, Freddie Mac data show.
A separate report showed a measure of homebuilder sentiment fell in May for a fifth straight month amid concerns over rising construction costs and a slowdown in demand.
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