Lower Mortgage Rates Should Help Bring a Stronger Pace of Sales
Source: Economics Group of Wells Fargo Bank, N.A.
Summary
New Home Sales Declined in August
New home sales dropped 4.7% to a 716K unit pace during August. The decline offset the strong jump in sales the month prior. Despite the dip, the pace of new home sales continues to be relatively sturdy on account of builder pricing incentives and a scarcity of available homes in the existing market. Looking ahead, lower mortgage rates should eventually provide a boost to new home sales, but affordability challenges and a softer labor market will likely limit the rebound.