New single family home sales dropped 6.2% in April for a seasonally adjusted annual rate of 622,000 largely due to elevated mortgage rates, higher inflation and economic uncertainty, according to the National Association of Home Builders’ analysis of data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Year-over-year, new home sales were down 11.3%.
“Although there are still signs of demand, many potential buyers are stepping back because of higher mortgage rates and gas prices,” Bill Owens, chairman of the National Association of Home Builders, said. “Builders continue to offer a range of sales incentives, but home sales have declined this year because income growth is not keeping pace with housing costs.”
“New home sales are on track to decline in 2026 as mortgage rates are expected to remain elevated in the months ahead,” NAHB Chief Economist Robert Dietz said. “The Midwest remains a bright spot, with sales up 7.3% year to date, compared with declines in the rest of the country.”
Read the full report here.
