New Home Sales were up 23.6% in June. The increase boosted the adjusted annual sales pace to 330,000 according to the Commerce Department. However, May's number was revised downward to a rate of 267,000. This was the slowest pace on record dating back to 1963. Hopefully, June's numbers will start a positive trend and the rest of the summer month's will continue to improve.
Home Prices:
A 20-city composite price index rose .5% on a seasonally adjusted basis in May after an upwardly revised .6% gain in April. This increase was more than some forecasters predicted. The homebuyer tax credit was an important reason sales data and prices improved.
The positive housing news lifted the stock market as the Dow rose 100 points to finishe the date at 10525.43. Some analysts are starting to re-look at home builders and putting more money into their stocks after this improving data.
Continued low mortgage rates remain an important factor in maintaing an increase in existing and new home sales. The 30 year fixed mortgage rates are around 4.50% to 4.70% as of July 26, 2010. Hopefully, these rates will remain low for the rest of the year.
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