Market Update: New home sales down 13.4%

This morning’s new home sales report showed a drop of 13.4% in sales. Quicken Loans Chief Economist Bob Walters offers the following comments on the report:

“July’s significant 13.4 percent month over month drop in new home sales isn’t cause for alarm.  New home sales data can be volatile.  Any one month, up or down, shouldn’t be given too much weight.  New home sales have been rising steadily since mid-2010 and the fundamentals indicate that the trend should continue.  While mortgage rates are up three-quarter percent, they remain historically very low.  And the pent up demand that has built over the past five years will likely continue to fuel further increases in both home prices and sales.  If we were to see three or four months of decreasing home sales, I would be concerned.  But until then, the trend remains our friend.”

If you would like to talk to Bob in greater detail, please contact us.