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Blame it on the rain or rates? New home sales disappoint

Published 05/23/2018, 10:13 AM
© Reuters.  Blame it on the rain or rates? New home sales disappoint
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  • New home sales for April came in at a seasonally adjusted annualized rate of 662K, down 10K from March's pace (which itself was revised down by 22K), and missed expectations for 677K.
  • January and February sales were also revised lower, trimming 41K from the first quarter's new home sales. Still new home sales are on pace for 665K this year vs. 613K in 2017.
  • Rates, of course, have moved sharply higher, but the weather was particularly bad in April this year.
  • Looking at U.S. regions, sales in the Northeast, Midwest, and South were either up modestly, or flat. The West, however, saw sales drop to 176K from 191K.
  • Full report
  • The homebuilders (ITB +1%) are shrugging off the news.
  • Previously: New home sales lower in April (May 23)
  • ETFs: XHB, ITB, PKB, NAIL, HOML
  • Now read: Q1 2018 Housing Update


Original article

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