New Home Sales Plummet to 16-Year Low

New Home Sales dropped to a 16-year low in March. Sales hit an annualized rate of 526,000 (down 38% y/y), the lowest rate since 1991 and well below the 580,000 economists were expecting. The median price fell as well, down 10% from $254,00 to $227,600. Bloomberg:

“This blows away any hope that things are stabilizing in housing,” said Michael Feroli, an economist at JPMorgan Chase & Co. in New York. “It’s a negative for growth and for the economy, and it’s going to persist into the second half of the year.”

Treasuries remained lower after the report, pushing yields higher. The benchmark 10-year note yielded 3.81 per cent as of 10:15 a.m. in New York, up 8 basis points from yesterday. Stocks were lower.

See our Economic Release Calendar for a summary of all the key Economic Data and Releases this month.

 

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