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WASHINGTON (Reuters) – U.S. new home sales fell to their lowest level in just over two years in June, the latest sign that rising interest rates combined with higher prices are dampening demand of accommodation.
New home sales fell 8.1% to a seasonally adjusted annual rate of 590,000 units in June, the lowest level since April 2020, the Commerce Department said Tuesday.
Economists polled by Reuters on average forecast an annualized level of 660,000 sales for June.
The May figure was revised down to 642,000 from 696,000 originally announced.
Sales fell in the densely populated Northeast, West and South, but jumped in the Midwest.
The US Federal Reserve is expected to raise its key rate an additional 75 basis points on Wednesday.
The housing market is one of the most interest rate sensitive sectors.
(Report Lucia Mutikani; French version Kate Entringer, edited by Jean-Stéphane Brosse)
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