US new home sales crawl higher; 30-year fixed rate mortgage hovers at 2.86%

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US new home sales crawl higher; 30-year fixed rate mortgage hovers at 2.86%

On Tuesday, US Commerce Department had issued a statement saying that the sales of new US single-family houses creeped up in July, snapping up a streak of three straight month of declines, however, US housing market kept losing steam amid sky-scrapping raw materials’ prices alongside a squeezed supply chain, as sales of new US single-family houses, the most lucrative item in US homebuilding industry, slipped 27.2 per cent in July on a year-on-year basis.

Nonetheless, latest US Commerce Department report on US housing market also had underscored an unprecedented leap in new housing inventory that ostensibly was boosted up by a record surge in the volume of homes which are yet to be started, as property holders and real estate merchants seemed to be utterly tentative to launch new projects amid an uproar in raw materials’ prices alongside an intensifying scarcity in available lands and workers.

Meanwhile, referring to a demand-surge in US single-family housing market, a US economist at Oxford Economics in New York, Nancy Vanden said, “While demand for new homes remains strong, high prices and backlogs in construction will temper sales in the months ahead.

Homebuilders are reportedly turning away buyers as they attempt to reduce the backlog of sales”.

US new single-family home sales rise 1.0 per cent in July

According to US Commerce Department, sales of new US single-family homes had bounced back 1.0 per cent last month to an annual rate of 708,000 units on a seasonally adjusted basis, while June’s sales reading had been revised higher to 701,000 units compared to an initially reported 676,000 units.

Besides, the median of US house prices surged as much as 18.4 per cent to $390,500 in July compared to the same time a year earlier, indicating a salubrious demand outlook following an obscure second quarter of the year.

According to US mortgage loan company Freddie Mac market survey, US 30-year fixed rate mortgage was hovering at 2.86 per cent last week, down about 0.01 per cent from a week earlier, while 15-year fixed rate home loans stood at 2.16 per cent.