Source: Economics Group of Wells Fargo Bank, N.A.
Summary
New Home Sales Under Pressure
New home sales slid 0.6% in July to a 652K annual sales pace. Upward revisions to prior data simultaneously revealed that transactions were on stronger ground than previously thought. Nevertheless, sales slipped 8.2% year-over-year, implying that high mortgage rates, economic uncertainty and a softening labor market are keeping buyers on the sidelines. Single-family home builders face added pressure from elevated inventories, which is likely to discourage a near-term rebound in single-family construction.