Sales of newly built, single-family homes declined 13.4 percent to a seasonally adjusted annual rate of 394,000 units in July as higher mortgage rates prompted a temporary pause in buying activity.
Builder confidence in the market for newly built, single-family homes rose three points to 59 on the Housing Market Index (HMI) for August. This fourth consecutive monthly gain brings the index to its highest level in nearly eight years.
The index increased 24 points to a level of 53, which is the highest second-quarter number since the inception of the index in 2008 and the seventh consecutive quarter of year-over-year improvements.
Sales of newly built, single-family homes surged 8.3 percent to a seasonally adjusted, annual rate of 497,000 units in June, their fastest pace in the last five years.
Double-digit revenue growth for these home builders during the recovery started with pre-planning, re-examination, and retrenching during the recession.
Sales of newly built, single-family homes rose for a third consecutive month in May, posting a 2.1 percent gain to a seasonally adjusted annual rate of 476,000 units.
As more homes begin to sell, all of the players involved in sales eventually will get some benefit from the momentum alone. But good markets cover up and forgive a lot of bad processes and business errors
