Sales of U.S. New Homes Fell in June After Large Revision
Source: Bloomberg
Fewer U.S. new homes than forecast were sold in June and data for the prior month was revised down by a record, painting a troubling picture of a market struggling to gain traction.
Sales declined 8.1 percent to a 406,000 annualized pace, the fewest since March and lower than any projection in a Bloomberg survey of economists, Commerce Department figures showed today in Washington. That followed a May rate of 442,000 that was 12.3 percent less than estimated last month.
Restrictive lending rules, limited land supply, higher mortgage rates and more expensive properties are restraining housing, underscoring Federal Reserve Chair Janet Yellen’s concern that the industry is underperforming. Other data showed the fewest Americans in more than eight years filed applications for unemployment benefits last week, probably reflecting a pickup in auto-making during a typically slow time of year.
“The housing data on balance has looked weaker than some of the other indicators on the economy,” said Michelle Meyer, a senior U.S. economist at Bank of America Corp. in New York. “The tightness in credit conditions has limited the pool of prospective buyers.”
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