New home sales tumble to lowest level since 2016

Updated: Aug 30, 2022 / 07:44 AM CDT

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(NewsNation) — U.S. homes sales tumbled to the lowest level in over six years due to higher mortgage rates and current home prices. The Department of Housing and Urban Development says single-family home purchases plunged 12.6% in July and some 511,000 houses were sold across the country, which is down from 585,000 in the month of June.

On a year-over-year basis, sales dropped around 29% compared to last year in July. This July saw the lowest level since January 2016.

January 2021, on the other hand, was the peak selling month with 993,000 homes sold, the highest level since the end of 2006.

Skylar Olsen, Chief Economist for Zillow, joined “Morning in America” to discuss fluctuating housing rates.

Olsen explained how the housing rates have affected buying and selling homes: “One of the ways to think about it is you know, we have that fast home value appreciation over the past two years or so. But if I just look at the last year, so I’m incorporating the mortgage rate increase, the mortgage payment is up over 60%. Okay, that’s you really finding out that you are no longer qualified, potentially, for the house that you thought you were going to be able to move forward.”