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Sales of newly built homes dropped 4.7% in April from March and fell a larger 7.7%
from the prior year, the U.S. Census said Thursday.
As CNBC writes, higher mortgage rates are clearly impacting sales. The average rate on the 30-year fixed mortgage was in the high 6% range at the end of March, but then shot up to 7.5% during April, cutting into affordability.
Median house prices are also increasing, partially because of the mix of homes selling. High-end market buyers are less influenced by mortgage rates and often use cash to finance residential deals.
In Baton Rouge, overall home sales also decreased last month.
National homebuilders point to high costs for land, labor and materials as reasons why they can’t lower their prices, although some of the largest production builders have been buying down mortgage rates to help boost sales.
