Sales of newly built homes fell 18 percent in December compared with December of 2017, according to data compiled by John Burns Real Estate Consulting, a California-based housing research and analytics firm.
New homes sales took a hit as mortgage rates rose sharply at the start of last fall, putting further stress on a market where prices had been overheating for the past two years.
“I think the 4.5 percent plus mortgage rate is just a double whammy,” said John Burns, CEO of JBRC. “It’s keeping entry level buyers out of the market. They’re very disappointed with what they can afford, and it’s keeping current homeowners who want to move locked in, because their current mortgage rate is so much lower.”… read more