U.S. new single-family home sales fell 6.2% in April to a seasonally adjusted annual rate of 622,000. The government released the data on Thursday. The figure missed the median economist forecast of 660,000. The decline signals a larger-than-expected pullback at the start of the spring selling season.
Rising mortgage rates are deterring buyers despite builder incentives. The median sales price for a new home rose 2.2% year-over-year to $422,500. The housing market continues to struggle for momentum after a multi-year slowdown.
Housing construction remains a drag on economic growth through the first quarter of 2025. New home inventory reached a 9.4-month supply at the current sales pace. Builders may remain cautious about starting new projects due to high inventory levels.