WASHINGTON - Sales of new U.S. single-family homes rebounded sharply in June, but sales for the prior three months were revised down, indicating that the housing market continued to tread water despite lower mortgage rates and a strong labor market.
Concerns about slowing growth, especially tied to trade tensions between the United States and China, as well as weakness in overseas economies are seen encouraging the Federal Reserve to cut interest rates next Wednesday for the first time in a decade. New home sales are drawn from permits and tend to be volatile on a month-to-month basis. Sales increased 4.5% from a year ago. The median new house price was unchanged at $310,400 in June from a year ago.
While single-family homebuilding rebounded in June, permits increased moderately and continued to lag housing starts.In a separate report on Wednesday, data firm IHS Markit said its Flash U.S. manufacturing PMI slipped to a reading of 50.0 in July, the lowest since September 2009, from 50.6 in June. The 30-year fixed mortgage rate has dropped to an average of 3.81% from a more than seven-year peak of 4.94% in November, according to data from mortgage finance agency Freddie Mac.
Thanks Trump!