Close this search box.

Newsfeed: New Home Sales Unexpectedly Tumble In February As Mortgage Apps Crash

By Tyler Durden

Despite the unexpected plunge in existing home sales, analysts expected new home sales in February to rebound modestly from January’s drop but they were wrong (again) as new home sales fell 2.0% (+1.1% exp) and worse still January’s 4.5% drop was revised drastically worse to a 8.4% plunge.

Source: Bloomberg

New Home Sales are still down 6.2% YoY (down YoY for the ninth straight month)

And the average new home sales price topped $500k for the first time ever.

A recent report showed a measure of homebuilders’ sales expectations for the next six months slumped in March to the lowest since June 2020 amid growing concerns over the combination of rising construction costs and higher interest rates.

And we suspect this is far from over as mortgage applications in the last week tumbled once again, now at its lowest since pre-COVID seasonal lows…

Source: Bloomberg

All of which has occurred before The Fed actually hiked rates even once and as housing affordability is about to crash by the most on record

The costs and financial hurdles to buying a home are not the only thing that have been on a tear recently. Rents have been on fire over the past year, with the Zillow Observed Rent index soaring 14.9% yoy to $1,904 in January.


More From The Real Estate Guys
  • Check out all the great free info in our Special Reports library.
  • Don’t miss an episode of The Real Estate Guys™ radio show. Subscribe on iTunes or Android or YouTube!
  • Stay connected with The Real Estate Guys™ on Facebook,  and our Feedback page.

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Broadcasting since 1997 with over 600 episodes on iTunes!

real estate podcast on itunesSubscribe on Androidyoutube_subscribe_button__2014__by_just_browsiing-d7qkda4



Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!




Be the first to know when new content arrives!

Explore The Archives

[gold_price content="prices"]
[gold_price content="ratio"]

The Real Estate Guys™ Guests and Contributors Have Been Featured On:

Scroll to Top