July New Home Sales were 1.7 percent below June's revised total of 638,000, coming in at an annual rate of 627,000, the Commerce Department reported. While sales were down month over month, they were up 12.8 percent from July of last year. July sales plunged in the Northeast and fell slightly in the South, while the Midwest and West saw solid gains. There was a 5.9-month supply of new homes available on the market, closer to the 6-month level considered normal.
Home construction rebounded a bit in July after the steep decreases seen in June. Housing Starts, which measure when excavation begins on a home, grew to a seasonally adjusted annual rate of 1.168 million units. This was a 0.9 percent increase from June's downwardly revised estimate of 1.158 million, the Commerce Department reported. Single-family starts, which make up the bulk of the residential housing market, were up 0.9 percent from June. However, on an annual basis, Housing Starts were down 1.4 percent from July 2017, likely due to higher construction costs for materials and land and labor shortages this year.
Retail Sales figures for July signaled that the U.S. economy is doing well. Sales were up 0.5 percent from June, well above the 0.1 percent expected. However, June Retail Sales were revised lower to 0.2 percent from 0.5 percent, which took some of the shine from July's figures. On an annual basis, Retail Sales were up 6.4 percent from July of last year.
If you or anyone you know has questions about home loan rates or products, please reach out. I'm always happy to help. Enjoy this month's issue of YOU Magazine.