New Home Sales Sag After 9-Year High

One of the main economic indicators looked at be many economists is new home sales. When the economy is doing well, new home sales are also doing well because people have money and jobs, making it easy for them to get mortgage finances. When the economy is sagging, new home sales also sag because people just don’t have the money to spend. In March, new home sales reached a 9-year high, but sales fell in April, sending mixed signals.

New-home sales fell sharply in April after reaching a nine-year high the prior month, a possible sign of weaker demand after a runup in prices. 

Purchases of new, single-family homes–a narrow slice of all U.S. home sales–fell 11.4% to a seasonally adjusted annual rate of 569,000 in April, the Commerce Department said Tuesday. Economists surveyed by The Wall Street Journal had expected sales to drop 1%. 

New-home sales in March reached a rate of 642,000, the highest since October 2007. Sales figures are highly volatile month to month. Over a broader period, the market appears to be stable. New-home sales climbed 0.5% in April from a year earlier… 

If President Trump is allowed to implement many of his programs, tens of thousands of new jobs will be created. With new jobs comes a better economy and with a better economy, the demand for new home sales increases. However, if Democrats and some Republicans continue to fight Trump on his projects, then the economy will not get as strong as hoped for and he will be blamed instead of those blocking the programs.

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