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.