Sales of new single-family houses dropped to the lowest level in four months in March 2022 amidst a rise in mortgage rates, according to the latest data from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
Regionally, the West saw the sales of new single-family homes rise by 21 percent in the 12-month period ending March 2022. The Northeast saw an increase of 12.8 percent, while the South and Midwest saw a decline of 24.7 percent and 13.8 percent respectively.
The median sales price of new homes sold in March 2022 was $436,700, up by 9 percent when compared to the previous month’s median sales price of $400,600. The average sales price for March was $523,900, an increase of 2.52 percent from February’s average of $511,000.
There were 407,000 new homes for sale at the end of March, representing a supply adequate for 6.4 months based on the present rate of sales.
“Policymakers must address building supply chain disruptions to help builders bring down construction costs and increase production to meet market demand,” Konter said.
Builder confidence is also suffering.
According to the NAHB/Wells Fargo Housing Market Index (HMI), builder confidence for newly-built single-family homes dropped two points to 77 in April, the fourth straight month of such declines.
For loan balances greater than $647,200, interest rates climbed to 4.89 percent. For mortgages backed by the Federal Housing Administration, the interest rate was 5.29 percent. Average contract interest rates for 15-year fixed-rate mortgages rose to 4.68 percent.