Global Finance News
24 Jun 2026, 14:08
U.S. new home sales fell sharply in May, signaling continued weakness in the housing market as elevated mortgage rates and affordability challenges weighed on buyer demand.
New home sales declined 7.3% month-over-month to an annualized rate of 580,000, significantly below the consensus forecast of 638,000 and down from 626,000 in April. The result marks a notable slowdown in housing activity and highlights the pressure facing homebuilders and prospective buyers.
The weaker-than-expected report suggests higher borrowing costs continue to limit affordability, particularly for first-time homebuyers. Although the labor market remains relatively healthy, many consumers appear reluctant to commit to large purchases amid elevated financing costs and economic uncertainty.
New home sales declined 7.3% month-over-month to an annualized rate of 580,000, significantly below the consensus forecast of 638,000 and down from 626,000 in April. The result marks a notable slowdown in housing activity and highlights the pressure facing homebuilders and prospective buyers.
The weaker-than-expected report suggests higher borrowing costs continue to limit affordability, particularly for first-time homebuyers. Although the labor market remains relatively healthy, many consumers appear reluctant to commit to large purchases amid elevated financing costs and economic uncertainty.