Despite Tumbling Mortgage Rates, US New Home Sales Dropped In August

New home sales in the US tumbled 4.7% MoM in August (though slightly less than the 5.3% drop expected) after July’s huge 10.3% MoM jump (revised down from +10.6%)

Source: Bloomberg

On a YoY basis, new home sales were up 9.8% (but down to 716k SAAR on the month), continuing to dramatically decouple from pending- and existing-home sales…

Source: Bloomberg

Interestingly, despite tumbling mortgage rates and soaring mortgage applications, sales dropped MoM…

Source: Bloomberg

Now, with The Fed pivoting into an easing cycle, will home prices start surging once again?

Source: Bloomberg

Have no fear, Kamala has a plan for that…