New Home Sales Crash During Recession That’s Not a Recession

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We have another housing bubble.

July new home sales crashed 12.6%, a much bigger fall than was expected. Year over Year sales have collapsed 29.6%. New home sales have now dropped during six of the last seven months, and are at the lowest level since January of 2016. The supply of unsold new homes is its highest since March 2009, Peter Schiff reports.

Sales of new U.S. homes plunged more than expected in July to the lowest level in six years as rising mortgage rates and the relentless increase in home values slowed activity by edging prospective homebuyers out of the market.

New single-family home purchases tumbled 12.6% to a seasonally adjusted annual rate of 511,000 units, the Commerce Department reported on Tuesday.

It marked the sixth consecutive month of declines. Economists surveyed by Refinitiv expected new home sales – which account for a small percentage of total sales – to fall 2.5% last month, Fox News reports.

This is the recession that Democrats claim isn’t a recession.

White House Press Secretary Karine Jean-Pierre has not held an on-the-record press briefing since August 9 . She contends the U.S. economy is stronger than ever and we’d like to know what she thinks about the new housing slump.

She’s MIA and no one seemed to notice. Can’t imagine why.

Mortgage rates, which move in tandem with US Treasury yields, have soared even higher than the Fed’s benchmark overnight interest rate. The 30-year fixed-rate mortgage is averaging 5.13%, up from 3.22% at the start of the year.

According to the NY Post, despite slowing demand, house price growth remains strong. The median new house price in July was $439,400, an 8.2% jump from a year ago. There were 464,000 new homes on the market at the end of last month, up from 450,000 units in June.

Keynesians have one solution – raise rates and sacrifice the housing market and businesses for that matter.

The recession is just getting started.


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