HUD and the Census Bureau shares that May New Home Sales Jump 11%

HUD and the Census Bureau

May New Home Sales Jump 11%

In a month of generally negative housing data, May’s new home sales stood out as the only positive sign, up by over 11% from April, according to Friday’s HUD and the Census Bureau report. In May, new single-family home sales increased to a seasonally adjusted annual rate of 696,000, up 10.7 percent from the revised April pace of 629,000 but down 5.9 percent from a year earlier, according to the data.

The sales vary by region. In the most prominent area, the South, sales increased by 1.5 percent from last year to 413,000 units in May, while sales in the West increased by 0.5 percent and increased by 39.3 percent to 202,000 units from 145,000 units in April. Seasonally adjusted from 47,000 units in April to 23,000 units in May and down 42.5 percent from a year earlier, sales in the Northeast decreased by 51.1 percent. Sales in the Midwest fell by 37 percent from a year ago and 18.3 percent in May to 58,000 units from 71,000 units in April.

According to the data, the median sales price of brand-new homes sold in May dropped to $449,000. The average sales price decreased to $511,400. At the end of May, the seasonally adjusted estimate of new homes for sale increased slightly to 444,000, which, based on the current sales pace, represents a supply of 7.7 months.

Pending Home Sales Post Surprise Increase In May, Likely Due To Brief Pullback In Mortgage Rates

The National Association of Realtors reports that pending home sales—a gauge of contracts to buy existing homes—rose modestly in May, up 0.7 percent from April, disrupting a six-month trend of decreasing demand. However, sales were still 13.6% below May 2021 levels.

Mortgage rates have been on the rise for buyers since the beginning of the year, but in May, they started to decline slightly, which may be the cause of the increase in sales. The overall active inventory climbed as more supply entered the market, and some homes remained on the market for a long.

According to Mortgage News Daily, the 30-year fixed mortgage average reached a high of 5.64 percent in the first week before dropping to 5.25 percent by the month’s end. It increased once more to a little over 6 percent by mid-June.

As per, the number of homes for sale has finally started to increase, up 21 percent from a year ago. However, it is still only approximately 50% of pre-Covid levels. Additionally, the median listing price increased by around 17% last week, remaining stable for the third week.

Regionally, pending home sales in the Northeast increased by 15.4%% over the previous month and decreased by 11.9% over May 2021. Sales in the Midwest were down 8.8 percent from a year ago and were down 1.7 percent for the month. Sales in the South were up 0.2 percent month over month but down 13.8 percent yearly. The West, where homes are most expensive, saw the most significant drop in sales, down 5.0 percent for the month and 19.8 percent from the previous year.

Home Price Indices Approach, Exceed 20% Annual Rate

The S&P CoreLogic Case-Shiller Indices indicated annual home price appreciation at 20.4 percent, while the Federal Housing Finance Agency House Price Index reported yearly appreciation at 18.8 percent.

S&P DJI, which publishes the S&P CoreLogic Case-Shiller Indices, managing director Craig J. Lazzara, said April’s findings showed preliminary but erratic indicators of a slowdown in the growth rate of U.S. home prices. Lazzara pointed out that a more difficult macroeconomic situation might not be able to sustain an extraordinarily high home price rise for very long.

U.S. home prices increased 1.6 percent in April, according to FHFA. According to the agency’s estimate, house prices rose 18.8 percent between April 2021 and April 2022.

Will Doerner, Supervisory Economist of FHFA’s Division of Research and Statistics, stated, “House price appreciation continues to remain elevated in April,” said Will Doerner, Supervisory Economist of FHFA’s Division of Research and Statistics. “The inventory of homes on the market remains low, which has continued to keep upward pressure on sales prices. Increasing mortgage rates have yet to offset demand enough to deter the strong price gains happening across the country.”

Next week’s potential market-moving reports are:

  • Monday, July 4th – No Report
  • Tuesday, July 5th – Factory Orders
  • Wednesday, July 6th ISMServices Index, Job Openings, Quits
  • Thursday, July 7thADP Employment Report, Initial Jobless Claims, Continuing Jobless Claims
  • Friday, July 8th – Unemployment Rate, Labor Force Participation Rate, Average Hourly Earnings

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends. I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (800) 216-1047.

Curious about how a reverse mortgage may impact your Social Security benefits? Get the facts and make informed decisions about your retirement income with our comprehensive guide!

If you’re approaching retirement or have already retired and are considering a reverse mortgage, you may be wondering if receiving a lump sum payment or monthly income from a reverse mortgage could reduce your Social Security or Medicare benefits.

According to the Consumer Financial Protection Bureau and elder care legal advisors, reverse mortgages will not affect Social Security payments or Medicare benefits. The reason? These benefits are not connected to income qualifications. Everyone who is age-qualified for Social Security is entitled to receive them.

How Do Reverse Mortgages Work?

Reverse mortgages are home loans that use the equity that you have in your home. If you’ve owned your home a long time, especially if the mortgage has been paid off or is close to being paid off, you have a significant amount of equity.

Reverse mortgages have been created to help retirees to have access to funds they may need for home repairs or for living expenses. They can give people peace of mind knowing that they will be able to pay for their ongoing living expenses.

Other Concerns With Reverse Mortgages

Some people do not receive regular Social Security checks, but instead, supplemental security income (SSI). Reverse mortgage income may affect SSI and Medicaid benefits. It must be reported to the Social Security Administration, unless you take only the funds you need each month and use them completely.

Why? Because SSI and Medicaid are means-related benefits. Reverse mortgage funds that you do not completely spend in the same month you receive them could be counted as assets, affecting these means-tested benefits.

However, older adults who receive Social Security and Medicare benefits are not in the same means-tested category as SSI and Medicaid recipients.

Learning About Reverse Mortgages

A reverse mortgage is a home loan that can provide older adults with income or access to a line of credit to use as they need it. It’s important to understand your unique financial circumstances and how a reverse mortgage could benefit you and your loved ones. Learn your options in reverse mortgage by talking with a qualified and experienced mortgage broker about the reverse mortgage process through California Platinum Loans today. 


Consumer Financial Protection Bureau, “Reverse Mortgage: A discussion guide,” August 2021

Moen Sheehan Meyer Elder Care Attorneys, “Does A Reverse Mortgage Affect Social Security or Medicare?,” 13 June 2022

In today’s news, Home sales face headwinds in November in the midst of a housing market! Find out more now!

Home Price Gains Slow

In October, the Case-Shiller U.S. National Home Price Index, which covers all nine census divisions in the United States, climbed 19.1 percent on an annual basis. In September, the yearly gain was 19.7%. The 10-City Composite was up 17.1 percent year over year, down from 17.9 percent the previous month, and the 20-City Composite rose 18.4 percent year over year, down from 19.1 percent the last month.

While prices rose in October, they did so at a slower pace. According to Craig J. Lazzara, Managing Director at S&P DJI, October’s gains were lower than September’s, while September’s gains were lower than August’s in all three indices. “We have previously suggested that the strength in the U.S. housing market is being driven in part by a change in locational preferences as households react to the COVID pandemic. More data will be required to understand whether this demand surge represents an acceleration of purchases that would have occurred over the next several years or reflects a more permanent secular change.”

Pending Home Sales Slip in November Amid Hot Housing Market

In November, pending home sales, a leading index of the housing market’s health fell short of forecasts. The National Association of Realtors (NAR) Pending Home Sales Index, which counts the number of properties under contract to be sold, fell 2.2 percent in November from October. According to Bloomberg consensus forecasts, analysts projected a 0.8 percent gain in revenue. 

Buyer competition alone is unrelenting, but home seekers have also had to contend with the negative impacts of supply chain disruptions and labor shortages this year,” NAR Chief Economist Lawrence Yun said in a statement. “These aspects, along with the exorbitant prices and a lack of available homes, have created a much tougher buying season.”

Housing demand remains high, according to Yun, who added that homes on the market for sale go from “listed status” to “under contract” in around 18 days.

Next week’s potential market-moving reports are:

  • Monday, January 3rd – Construction Spending          
  • Tuesday, January 4th – Job Openings
  • Wednesday, January 5th – ADP Employment Report, FOMC Minutes
  • Thursday, January 6th – Initial Jobless Claims, Continuing Jobless Claims
  • Friday, January 7th – Unemployment Rate, Consumer Credit

As your mortgage and real estate professional, I am happy to assist you with any information you may need regarding mortgage or real estate trends.  I welcome the opportunity to serve you in any way I possibly can. Please feel free to reach me at (800) 216-1047.