New home sales plummeted, dropping -6.6% MoM (consensus -2.7% MoM). This is the largest monthly drop since January, and puts monthly sales just above the 7 year low reached in March. New home sales have declined -22% versus a year ago.
Inventories rose to 7.8 months, based on the current sales pace, an increase from May's 7.4 months supply, but still below the 8.3 month high set in March. Homes completed and waiting for sale declined by 2,000 last month.
The South was the only region to see an increase in sales, rising 7.6% MoM. The other three regions saw substantial declines. New home purchases fell -27% in the Northeast, -23% in the West, and -17% in the Midwest.
Median new home prices fell -2.2% YoY.
New home sales normally account for about 15% of monthly home purchases.
Interest rates have fallen dramatically this morning. The 10y Treasury yield is down 10bp, to 4.80%, a level last seen in April. The 2y Treasury yield has fallen an even greater -14bp, causing the yield curve to steepen by 4bp.
Thursday, July 26, 2007
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