The most prominent decline took place in the residential construction charts. Total housing starts for May are at a seasonally adjusted annual rate of 1.277 million, down 5.5 percent from the revised April pace, and down 19.3 percent from a year ago.
“Overall lower housing production correspond with our latest industry surveys, which show builders are concerned with a high interest environment that is making it harder to get acquisition, development and construction loans to increase home building activity,” said Carl Harris, chairman of NAHB and custom home builder from Wichita, Kansas. “Higher rates for builder and developer loans, along with ongoing supply-side challenges regarding construction labor and buildable lots, are acting as headwinds for new home and apartment construction.”
On Friday, the National Association of Realtors reported existing home sales, which edged lower in May
Meanwhile, the median existing-home sales price rose 5.8 percent from a year ago to a record $419,300.
“Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers,” said NAR Chief Economist Lawrence Yun. “The mortgage payment for a typical home today is more than double that of homes purchased before 2020. Still, first-time buyers in the market understand the long-term benefits of owning.”
According to Freddie Mac, the 30-year-fixed-rate mortgage averaged 6.87% as of June 20. That’s down from 6.95% the prior week but up from 6.67% one year ago.
And the third major mover on the lates dashboard occurs in the monthly sales charts. Sales among retailers classified as “building material and garden equipment and supplies dealers” dipped in May, according to the Advance Monthly Retail Sales report released Tuesday morning by the U.S. Census Bureau.
These retailers (NAICS 444) generated $48.490 billion in estimated sales on an unadjusted basis in May. That’s down 4.0 percent from $50.535 billion in May 2023.
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Coming next: The Conference Board will release the closely watched Consumer Confidence Index on Tuesday, June 25.