New Home Sales Increase in May Before Fed June Rate Rise

Source: NAHB — 

After posting four consecutive monthly declines on rising mortgage rates and worsening affordability conditions, new home sales posted a solid gain in May as some buyers rushed into the market in advance of the Federal Reserve’s June interest rate hike.

Sales of newly built, single-family homes in May increased 10.7% to a 696,000 seasonally adjusted annual rate from an upwardly revised reading in April according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. New home sales are down 10.6% in 2022 on a year-to-date basis.