U.S. Home sales rise -- or tumble. Choose one. Both, if you'd like.

[mahatmakanejeeves]

US new home sales rise; prior three months revised down

PUBLISHED 3 HOURS AGO UPDATED 3 HOURS AGO
Reuters

KEY POINTS

• Sales of new U.S. single-family homes rebounded sharply in June, but sales for the prior three months were revised down, indicating that the housing market continued to tread water despite lower mortgage rates and a strong labor market.
• The Commerce Department said on Wednesday new home sales rebounded 7.0% to a seasonally adjusted annual rate of 646,000 units last month.
• Sales increased 4.5% from a year ago. The median new house price was unchanged at $310,400 in June from a year ago.

BUSINESS NEWS JULY 23, 2019 / 10:10 AM / UPDATED A DAY AGO
U.S. home sales tumble as prices surge to record high

Lucia Mutikani
5 MIN READ

WASHINGTON (Reuters) - U.S home sales fell more than expected in June as a persistent shortage of properties pushed prices to a record high, indicating the housing market was struggling to regain speed since hitting a soft patch last year.

Housing and manufacturing are the main areas of weakness in the economy. They are offsetting strong consumer spending, resulting in a slowdown in economic activity that, together with trade tensions and tepid global growth, could see the Federal Reserve cutting interest rates next Wednesday for the first time in a decade.

The National Association of Realtors said on Tuesday existing home sales dropped 1.7% to a seasonally adjusted annual rate of 5.27 million units last month. The median existing house price increased 4.3% from a year ago to an all-time high of $285,700 in June.

“Meager inventory levels, especially in the entry-level segment, and still-rising prices continue to limit the selection of homes available to more budget-conscious buyers,” said Matthew Speakman, an economist at Zillow.
....

To recap, sales of "new U.S. single-family homes rebounded sharply in June," but "U.S home sales fell more than expected in June."

Glad I could clear that up for you.

[imaginary girl]

1. Sounds like new home sales rose last month ...

... After falling during the previous months, but that sales of existing homes are sluggish. Big point is new vs existing.

[progree]

2. Did not know that the mortgage rate had dropped by over a full percentage point

From the 2nd (Reuters) article

The 30-year fixed mortgage rate has dropped to an average of 3.81% from a more than seven-year peak of 4.94% in November, according to data from mortgage finance agency Freddie Mac.

[FBaggins]

3. The difference is new construction vs. resales.

The stories are actually consistent when you consider that the resale number declined, supposedly, because of an inventory shortage. That could reasonably drive more buyers into the new home construction side of the market.

Home builder stocks popped at the news.