New Single Family Sales Plummet in April!

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Mortgage and Lending with The Federal Savings Bank/Lending in 50 states NMLS # 109616

Surging mortgage rates coupled with record-high prices weighed on sales of new single-family homes in April as purchases fell to a two-year low. New Home Sales dropped 16.6% from March to April to an annual rate of 591,000 units versus the 750,000 expected and were down nearly 17% from April 2021. Sales fell across the four major U.S. regions. The median sales price of new houses sold in April 2022 rose to a record high of $450,600, up almost 20% from a year ago. The average sales price was $570,300, up 23% from April 2021. Inventories were healthy at an 8.3-month supply.

The national average price for a regular gallon of gasoline hit another record high today of $4.59 while WTI oil hovers near $111. Such high gas prices are an enormous cost for the average consumer. Diesel prices around $6 a gallon are also at record highs. Today’s national average for a gallon of gas is $4.59, which is 47 cents more than a month ago, and $1.56 more than a year ago. AAA sees the average gas price at $5 ... soon.

The number of home borrowers still in forbearance has declined to the lowest level since June 2020, reports the MBA. The number dropped in April to 0.94%, with 470,000 borrowers remaining with an active plan. The total number of loans in forbearance fell by 11 basis points, to 0.94% in April from 1.05% in March. “With the number of borrowers in forbearance decreasing to less than half a million, the pace of monthly forbearance exits reached its lowest level since MBA started tracking exits in June 2020,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis.

 

Sales of new single family homes decline. Gas prices continue to rise. Forbearance numbers decline.

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