Remember that robust housing market that was going to life the U. S. economy out of the doldrums it’s been trapped in for the last four years? Maybe not so much:
Though it may have largely been lost in the shuffle of Middle East headlines, sales of new homes fell 13.4% in July to 394,000, which was a far cry from the 487,000 forecast by the consensus and the biggest variance from expectations in more than five years. In addition, sales in June were revised down to 455,000 from 497,000.
Those numbers are proof that whatever logic the real estate Pollyannas, who said mortgage rates weren’t going to affect demand for new homes, were using is totally false.