USD Doesn’t Blink As New Home Sales Dive Below 700K Again on Surging Rates
Skerdian Meta • 1 min read
This month we have seen positive data from the US, showing that the US economy is holding up well, despite the turbulences all over the world. Although, with interest rates at record levels, consumer pandemic savings are eroding in the US. This will filter through the economy if employment and earnings start falling too.
The real estate sector is feeling that, after some recent signs and today’s home sales, as well as consumer confidence showed weakness. Sales of new single‐family houses tumbled 8.7% in August to a seasonally adjusted annual rate of 675,000, the data published jointly by the US Census Bureau and the Department of Housing and Urban Development showed on Tuesday.
This reading followed the 4.4% growth recorded in July and came in worse than the market expectation of a modest decline to an annual rate of 700,000. The median sales price of new houses sold in August 2023 was $430,300, and the average sales price was $514,000, the publication revealed.
US August New Home Sales
- August new home sales 675K vs 700K expected
- Prior was 714K (revised to 739K)
- Sales down 8.7% m/m
- Prior sales +4.4% (revised to +8.0%)
US home sales have been recovering for months but the recent jump in interest rates is a big problem that should bite hard in September and October (if it continues).
US Consumer Confidence from the Conference Board
- September consumer confidence 103.0 points vs 105.5 expected
- August consumer confidence was 106.1 points
- Present situation index 147.1 points vs 144.8 prior (revised to 146.7 points)
- Expectations index 73.7 points vs 80.2 prior (revised to 83.3 points)
- 1 year Inflation 5.8% vs 5.8% prior
- Jobs hard-to-get 13.6 points vs 14.1 points prior