New Home Sales Rebounded In November As Prices Tumble

New home sales rose 5.9% MoM in November (less than the expected 9.8% surge) as October’s initial 17.3% plunge (ascribed to the hurricanes) was revised up to  14.8% MoM decline…

Source: Bloomberg

That lifted new home sales SAAR up 8.7% YoY – the highest since Oct 2023.

Source: Bloomberg

On the bright side, median new home prices are tumbling (once again below existing home median prices) to the lowest since Feb 2022…

Source: Bloomberg

New home sales continue to roughly track mortgage rates (with a lag) which suggests this short-term (post-storm) blip may not last long..

Source: Bloomberg

…and with Powell pivoting to more hawkish rate trajectory, good luck expecting mortgage rates lower any time soon.