If you're surprised by the collapse in new home sales in April, then you're not paying attention.
The 11.4% MoM plunge in new home sales in April was 5 standard deviations below expectations and the biggest since March 2015.
Year-over-year, new home sales have tumbled back to unchanged…
As the surge in mortgage rates (and tumble in affordability) filters through to actual sales (just as it did in 2013's taper tantrum)…
New home sales fell 73k in April, with the Median new home price falling 3.8% y/y to $309,200
12% of new homes sold in April cost more than $500,000, down from 18% last month. Months’ supply at 5.7 in April compared to 4.9 in March.
And the biggest driver of new home sales collapse was in The West – which saw a 26.3% collapse – the most since Oct 2010…
Probably a good time to hike rates again Janet, eh?
via http://ift.tt/2qfZYVX Tyler Durden