financetom
Economy
financetom
/
Economy
/
US new home sales slump in April amid higher mortgage rates, prices
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
US new home sales slump in April amid higher mortgage rates, prices
May 28, 2026 8:03 AM

WASHINGTON, May 28 (Reuters) - Sales of new U.S. single-family homes fell in April as the boost from better weather faded and mortgage rates remained elevated.

New home sales dropped 6.2% to a seasonally adjusted annualized rate of 622,000 units last month, the Commerce Department's Census Bureau said on Thursday. Sales were weighed down by winter storms in January before bouncing back in February and March as temperatures warmed up. 

Sales last month tumbled in the Northeast, South and Midwest, but rose in the West. New home sales, which are counted at the closing of a contract, account for a small share of U.S. home sales and tend to be volatile on a month-to-month basis. They declined 11.3% on a year-over-year basis in April.

The housing market has been constrained by higher mortgage rates. Mortgage rates dropped early this year as mortgage finance agencies Freddie Mac and Fannie Mae expanded purchases of mortgage-backed securities. But they reversed course after the U.S. and Israel began a war with Iran in late February.

The average rate on the popular 30-year fixed-rate mortgage jumped from 5.98% in late February to 6.46% at the start of April, data from Freddie Mac showed. It averaged 6.30% by the end of the month and climbed to 6.51% last week.

With sales slumping, new housing inventory increased to 489,000 units in April from 481,000 units in March.

An oversupply of new homes on the market is also hampering builders' ability to aggressively break ground on new single-family housing projects. 

Single-family housing starts and building permits dropped in April, the government reported last week. Residential investment, which includes home building and sales via brokers' commissions, has contracted for five straight quarters.

At April's sales pace, it would take 9.4 months to clear the supply of new houses on the market, up from 8.7 months in March. The median new house price increased 2.2% to $422,500 in April from a year earlier. Most of the homes sold in April were in the $300,000-$799,999 range.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Trump's Tariffs Remain Fed's Biggest Risks To Rate Cuts, Minutes Say
Trump's Tariffs Remain Fed's Biggest Risks To Rate Cuts, Minutes Say
Oct 8, 2025
President Donald Trump's trade tariffs continue to weigh on the outlook for growth and inflation, raising concerns over how long the Federal Reserve can stick with its planned cycle of interest rate cuts. While the central bank moved forward with a 25-basis-point cut at the September meeting, the internal debate revealed that tariff-driven price pressures remain a key obstacle to...
Factbox-Who is still working and who has been furloughed in the US government shutdown?
Factbox-Who is still working and who has been furloughed in the US government shutdown?
Oct 8, 2025
WASHINGTON (Reuters) -Hundreds of thousands of U.S. federal workers have been ordered not to report to work, while others have been told to stay on the job during the U.S. government shutdown, which started on October 1. Here is an overview of who has been furloughed at major government agencies, based on their shutdown plans. DEFENSE DEPARTMENT The 2 million...
Trump's Tariffs Could Spark US Factory Boom, Says 'The Big Short' Investor Steve Eisman: 'It's A Big Positive' In The Long Run
Trump's Tariffs Could Spark US Factory Boom, Says 'The Big Short' Investor Steve Eisman: 'It's A Big Positive' In The Long Run
Oct 8, 2025
Investor and podcast host Steve Eisman said that while the tariffs imposed by President Donald Trump could weigh on the economy in the near term, they could set the stage for a U.S. industrial resurgence. ‘A Big Positive’ In The Long Run Speaking on the tariffs and their impact on the U.S. economy during an interview on the New Money...
Bitcoin Crash Off the Table as Four-Year Cycle is Dead: Arthur Hayes
Bitcoin Crash Off the Table as Four-Year Cycle is Dead: Arthur Hayes
Oct 9, 2025
Bitcoin (BTC) is unlikely to enter a bear market in the coming months as supportive monetary conditions are expected to prevail, effectively rendering the traditional four-year halving cycle obsolete, according to Arthur Hayes, chief investment officer and co-founder of Maelstrom. In an essay titled Long Live the King! published Thursday, Arthur Hayes argued that the primary catalyst behind previous bitcoin...
Copyright 2023-2026 - www.financetom.com All Rights Reserved