( Washington, 25th July 2020 ) Driven by historically low borrowing rates, the sales of new homes in the United States in June rose to the highest level in the past 13 years, further showing that residential real estate is a bright spot in the economy.
Friday’s government data showed that sales of newly built single-family homes in June increased by 13.8% to 776,000 units at a discounted annual rate; May’s data was revised up to an increase of 19.4%. The growth rate in June exceeded the expectations of all economists surveyed by Bloomberg; economists expected a median of 700,000 units. The median selling price rose 5.6% year-on-year to US$329,200 due to reduced inventory.
Historical Low Mortgage Interest Rates
Historically low mortgage interest rates, coupled with more stable financing for high-income Americans during the epidemic, are driving demand growth and helping to stimulate a rebound in residential construction activities, supporting economic recovery. Nevertheless, due to millions of people losing their jobs and increasing cases in many parts of the United States, sales may not reach pre-pandemic levels.
**Info & Image are taken online
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