New Home Sales Surge In January As Mortgage Apps Crash To 9-Month Lows

After the surprise rise in existing home sales, analysts also expected a modest 1.7% MoM rise in new home sales in January (after plunging in November and rebounding very modestly in December). But, in the face of collapsing mortgage apps, new home sales surprised with a 4.3% MoM surge…

Source: Bloomberg

Median new home price rose 5.3% YoY to $346,400 (average selling price at $408,800) and 21% of new homes sold in Jan. cost more than $500,000, up from 16% prior month

However, the surge in new home sales comes as mortgage applications crashed by most since April (dropping for 5 of the last 6 weeks)…

Source: Bloomberg

With home purchase applications (as opposed to refis) collapsing to the lowest in 9 months…

Source: Bloomberg

As 30Y mortgage rates rise to their highest since September

Source: Bloomberg

Get back to work Mr.Powell!