2 weeks Ago By Naveen Athrappully
The number of new homes sold in the United States hit the highest level since May 2023 last month amid an easing of mortgage rates, according to the U.S. Census Bureau.
However, prices continue to remain high with the median price of new houses sold last month being $426,300. While lower mortgage rates have provided some relief for prospective buyers, they still “aren’t seeing as many homes that fall into their budget range as the inventory growth suggests there should be,” the post said. “Many, as we have seen, are turning to new construction, taking advantage of builder promotions like mortgage rate buydowns and focusing on the more affordable listings that builders offer.
” NAHB Chairman Carl Harris, a custom home builder from Wichita, Kansas, pointed out that builders now feel “more optimistic” about the 2025 market condition even though housing affordability continues to pose a challenge. The “wild card” for the housing market outlook is the U.S.
general election on Nov. 5, he noted. The Democratic candidate intends to deal with red tape to speed up the process of constructing homes.
Harris said she would sign legislation seeking to prohibit new forms of price fixing done by “corporate landlords.” Meanwhile, Trump has promised to bring down prices and “make America affordable again.” In addition, Republicans aim to “open limited portions of Federal Lands to allow for new home construction, promote homeownership through Tax Incentives and support for first-time buyers, and cut unnecessary Regulations that raise housing costs.
” Back in March last year, the former president also floated the idea of building new cities in the United States that would give “hundreds of thousands of young people and hardworking families a new shot at homeownership.” Voters backing Harris were found to be “slightly more likely” than Trump voters to list housing affordability as a major issue. The company speculated that this difference could be because “Democrats are more likely to live in expensive coastal areas.
” “Investors in the bond market are particularly worried about the possibility of increased government debt after the election,” he said. “They’re concerned that one party could end up controlling both the White House and Congress, which would increase government spending more. That concern, along with strong economic data, is pushing up 10-year treasury yields and mortgage rates.
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