Overview
- Sales of new single‑family homes dropped 6.2% in April to a 622,000 annual pace and were down 11.3% from a year earlier, according to the Census Bureau.
- Mortgage rates rose after late‑February geopolitical tensions, lifting the average 30‑year fixed rate above 6% and weighing on buyer affordability and contract signings.
- Inventory of new homes climbed to 489,000 units and months’ supply widened to 9.4 months, a level that historically favors buyers and slows sales velocity.
- The median new‑home price rose to $422,500 in April largely because a larger share of contracts were for $400,000‑plus homes, not because broad prices strengthened.
- Builders have cut speculative starts and are shifting toward selling planned homes and offering incentives, which could keep construction and sales subdued until affordability improves.