Months’ supply of new homes for sale hits highest level in 2.5 years

Sales of single-family homes fell in June

Sales of new single-family houses fell in June, expanding the months’ supply of homes on the market, according to data released by the U.S. Census Bureau today.

Single-family home sales fell 8.1 percent from May to June to a seasonally adjusted annual rate 406,000, and were down 11.5 percent compared to the same time last year, the Census Bureau said.

New-home sales image via Shutterstock.
New-home sales image via Shutterstock.

The seasonally adjusted estimate of new houses for sale rose 3.1 percent from May to June to 197,000. That represents a supply of 5.8 months at June’s sales pace, the highest level since October 2011.

The numbers also show that new-home inventory has grown substantially from last year, with the amount of new homes for sale posting a 23.1 percent annual gain in June.

In a separate survey, Freddie Mac reported that mortgage rates continue to hover below year-ago levels.

Rates on 30-year fixed-rate mortgages averaged 4.13 percent with an average point of 0.6 percent for the week ending July 24, unchanged from last week and down from 4.31 percent a year ago, according to Freddie Mac.

Rates on 15-year fixed-rate mortgages and five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans increased, while rates on one-year Treasury-indexed ARMs stayed flat.