{"id":1543650,"date":"2025-06-25T14:08:04","date_gmt":"2025-06-25T18:08:04","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1543650"},"modified":"2025-06-25T14:08:04","modified_gmt":"2025-06-25T18:08:04","slug":"new-home-sales-plunged-in-may-as-mortgage-rates-rose","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/new-home-sales-plunged-in-may-as-mortgage-rates-rose\/1543650\/","title":{"rendered":"New Home Sales Plunged In May As Mortgage Rates Rose"},"content":{"rendered":"<p><span class=\"field field--name-title field--type-string field--label-hidden\">New Home Sales Plunged In May As Mortgage Rates Rose<\/span><\/p>\n<div class=\"clearfix text-formatted field field--name-body field--type-text-with-summary field--label-hidden field__item\">\n<p>After an unexpected surge higher in April, new home sales were expected to tumble in May&#8217;s data released today following a plunge in homebuilder confidence and weak existing home sales.<\/p>\n<p>The consensus was right but way off in scale as <strong>new home sales plunged 13.7% MoM<\/strong> (after the 10.9% rise in April), dragging sales down 6.3% YoY.<\/p>\n<p>This was a four standard deviation miss from expectations&#8230;<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/get_attachment_url%20%2843%29_0.jpg?itok=dIB_JpCe\"><\/a><\/p>\n<p><strong>That is the biggest MoM drop since June 2022&#8230;<\/strong><\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfmE77A_0.jpg?itok=Ot26Glhc\"><\/a><\/p>\n<p>Source: Bloomberg<\/p>\n<p>This dragged the SAAR total down to the low end of the last three years channel&#8230;<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm6EDB_1.jpg?itok=qp84DN5k\"><\/a><\/p>\n<p>Source: Bloomberg<\/p>\n<p>Figures last week showed the <strong>pace of ground-breaking on single-family homes in May was one of the slowest since 2023. <\/strong><\/p>\n<p>While builders are lowering prices and offering subsidies to reduce customers\u2019 financing costs, the concessions are yielding diminishing returns and encouraging many builders to slow construction.<\/p>\n<p>The home sales report showed a slight increase in <strong>the number of new houses for sale in May, to the highest level since 2007.<\/strong>\u00a0Figures last week showed the pace of ground-breaking on single-family homes in May was one of the slowest since 2023.<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfmC1CC.jpg?itok=WnGhEKln\"><\/a><\/p>\n<p>Source: Bloomberg<\/p>\n<p><strong>The median sales price increased 3% from a year ago to $426,600 last month, marking the first year-over-year price gain in 2025.<\/strong><\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm98BB.jpg?itok=1CU71ctd\"><\/a><\/p>\n<p>Source: Bloomberg<\/p>\n<p>The plunge in new home sales came as mortgage rates ticked back higher&#8230;<\/p>\n<p><a href=\"https:\/\/cms.zerohedge.com\/s3\/files\/inline-images\/bfm8DF8_0.jpg?itok=V3U-496s\"><\/a><\/p>\n<p>Source: Bloomberg<\/p>\n<p>And don&#8217;t expect rate-cuts to help. The last cuts steepened the yield curve and prompted higher mortgage rates.<\/p>\n<\/div>\n<p>      <span class=\"field field--name-uid field--type-entity-reference field--label-hidden\"><a title=\"View user profile.\" href=\"https:\/\/cms.zerohedge.com\/users\/tyler-durden\" class=\"username\">Tyler Durden<\/a><\/span><br \/>\n<span class=\"field field--name-created field--type-created field--label-hidden\">Wed, 06\/25\/2025 &#8211; 10:08<\/span><\/p>\n<p>\u200b<a href=\"https:\/\/www.zerohedge.com\/personal-finance\/new-home-sales-plunged-may-mortgage-rates-rose\" target=\"_blank\" class=\"\">https:\/\/www.zerohedge.com\/personal-finance\/new-home-sales-plunged-may-mortgage-rates-rose<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>New Home Sales Plunged In May As Mortgage Rates Rose After an unexpected surge higher in April, new home sales were expected to tumble in&#8230;<\/p>\n","protected":false},"author":0,"featured_media":1543651,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1543650","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6tzA","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2025\/06\/get_attachment_url20284329_0-qEAxZV.jpg","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1543650","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1543650"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1543650\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1543651"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1543650"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1543650"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1543650"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}