New Home Sales Rose Slightly After Revisions Erased January's Surge

New home sales surprised everyone in January, surging by 7.5 percent to 670,000 units, the highest rate since March 2022. It was, however, only an illusion. That number has now been revised down to 633,000. The more modest number – which is still significantly higher than analysts had expected – means that the February number, a seasonally adjusted annual sales rate of 640,000 units, represents a monthly increase of 1.1 percent. This is down 19 percent from the 790,00-unit rate in February 2022. [newhomesall] The February number wasn’t a surprise. Even before the January revision, analysts had expected a pullback. Those polled by Econoday had a consensus estimate of 645,000 and Trading Economics came in at 650,000. On a non-adjusted basis, there were 59,000 homes sold in February, up from 55,000 in January. This brought the year-to-date numbers to 114,000 versus 141,000 units, respectively. At the end of February, there were an estimated 436,000 new homes available for sale. This is estimated to be an 8.2-month supply at the current sales pace. An estimated 75,000 of those homes are ready for occupancy. The median sales price of a home sold last month was $438,000 and the average was $498,700. A year earlier the respective prices were $427,400 and $522,200. [newhomeprices] Sales in the Northeast were down 40.0 percent from January and 55.3 percent from a year earlier. In the Midwest , the monthly decrease was 1.4 percent for an annual decline of 20.2 percent. Sales rose in both the South and West in February, growing by 3.0 percent and 8.1 percent, but were still lower year-over-year by 33.2 and 10.1 percent, respectively.

March 23, 2023 Download our Mobile App: Download our Mobile App: Housing News New Home Sales Rose Slightly After Revisions Erased January's Surge New home sales surprised everyone in January, surging by 7.5 percent to 670,000 units, the highest rate since March 2022. It was, however, only an illusion. That number has now been revised down to 633,000. The more modest number – which ... (read more) Mortgage Rate Watch Mortgage Rates Inch Down to Lowest Levels Since Early February Over the course of the past two days, the average conforming 30yr fixed rate has moved down to the lowest levels since early February for most lenders. In nuts and bolts terms, that's a drop of more than half a percent. Yesterday accounted for... (read more) MBS Commentary Bonds Improve on Late Day Risk Aversion; Thoughts on Liquidity Bonds Improve on Late Day Risk Aversion; Thoughts on Liquidity Bonds began the day in slightly weaker territory, but eventually turned green with help from a flight-to-safety in Europe. A few hours late... (read more) Rob Chrisman QC, Marketing and Sales, Credit/Profitability Products; Tax and Credit Info for Disaster Areas Things are always changing. No bagpipe player I saw growing up looked, or played, like this. The MBA’s forecast for 2023 volumes changed, and here’s the latest by the MBA on 2023’s originations: $1.8 trillion. Technology is always changing. No, this ... (read more) Mortgage Rates 30 Yr. Fixed Rate 6.44% -0.01% Rate Change Points Mortgage News Daily 30 Yr. Fixed 6.44% -0.01 0.00 15 Yr. Fixed 5.93% -0.02 0.00 30 Yr. FHA 5.72% -0.03 0.00 30 Yr. Jumbo 5.95% -0.04 0.00 5/1 ARM 6.55% +0.04 0.00 30 Yr. VA 5.75% -0.06 0.00 Updates Daily - Last Update: 3/23 15 Yr. Fixed Rate 5.93% -0.02% Rate Change Points Freddie Mac 30 Yr. Fixed 6.42% -0.18 0.00 15 Yr. Fixed 5.68% -0.22 0.00 Updates Weekly - Last Update: 3/23 Rate Change Points Mortgage Bankers Assoc. 30 Yr. Fixed 6.48% -0.23 0.66 15 Yr. Fixed 6.02% -0.12 0.60 30 Yr. Jumbo 6.30% -0.09 0.55 Updates Weekly - Last Update: 3/22 MBS / Treasuries UMBS 30YR 5.0 99.86 +0.06 Price / Yield Change MBS UMBS 5.0 99.86 +0.06 UMBS 5.5 101.02 +0.05 GNMA 5.0 100.28 +0.03 GNMA 5.5 101.22 0.00 Pricing as of: 3/23 5:31PM EST 10 Year US Treasury 3.4320 -0.0190 Price / Yield Change US Treasury 2 YR Treasury 3.837 -0.123 5 YR Treasury 3.444 -0.090 7 YR Treasury 3.447 -0.060 10 YR Treasury 3.432 -0.019 30 YR Treasury 3.705 +0.035 Pricing as of: 3/23 5:31PM EST Latest Video We are heading toward a recession: Sri-Kumar Global Strategies' Komal Sri-K... The 2pm Bond Report — March 23, 2023 Fed may stop raising rates, but don't expect rate cuts soon, says Wells Far... Fed raises rates by 25 basis points: Is the tightening cycle near the end? Around the Web Calculated Risk Blog More Good News for Homebuilders CNBC The Fed projections call for just one more rate hike this year Calculated Risk Blog New Home Sales at 640,000 Annual Rate in February; New Home Average Prices Down 4.5% Year-over-year CNBC Bank of England hikes interest rates by 25 basis points after inflation surprises Calculated Risk Blog Weekly Initial Unemployment Claims decrease to 191,000 CNBC Financial conditions are tightening after SVB's collapse and could slow the economy, Powell says CNBC Fed hikes rates by a quarter percentage point, indicates increases are near an end Calculated Risk Blog Black Knight: Mortgage Delinquencies Increased Slightly in February CNBC Treasury yields fall as investors weigh Fed's interest rate policy outlook CNBC Treasury will do whatever it takes to ensure 'savings remain safe,' Yellen to tell senators Calculated Risk Blog FOMC Statement: Raise Rates 25 bp; "some additional policy firming may be appropriate" Calculated Risk Blog AIA: Architecture Billings "Slowdown Continues" in February CNBC Swiss central bank hikes interest rates by 50 basis points despite Credit Suisse turmoil

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