New Home Sales Slump Amid High Rates

New home sales nosedived in May, plummeting 7.3% from April and 6.8% year-over-year—way below expectations—highlighting mounting affordability pressures. Despite fewer sales, median prices climbed 2% to $424,900, fueled by builders shifting focus to pricier homes. Inventory now sits at over ten months, while underlying demand remains strong due to demographics and past underbuilding. Yet high mortgage rates and economic uncertainty are chilling buyer enthusiasm, even in the segment once seen as more resilient. Some analysts believe this could be the bottom, with potential recovery tied to future rate cuts—if the Fed’s inflation stance allows it. Support the show:Get a discount at https://solipillow.com/discount/dnn. Advertise on DNN:[email protected] This is an automated, high-level news summary based on public reporting.Report issues to [email protected]. View sources & latest updates:https://sources.thednn.ai/8020a47ea2068d31