New Home Sales Fall to Record Low

By:: Kara Johnson | August 25, 2010

New home sales fell to their lowest rate on record in July, falling to an annual rate of 276,000 units, according to figures released this morning by the Commerce Department.

The figure represented a 12.4 percent decline in sales from June and was the lowest annual rate reported since the Commerce Department began tracking the data in January 1963. Compared to last year, new home sales are down 32.4 percent from July 2009.

The report shows the housing market is still “nursing a bad hangover,” according to a statement by Mitchell Hochberg, of Madden Real Estate Ventures in New York, who listed a number of problems that are still dogging the industry.

"With shadow inventory, rising foreclosures, little job growth and more stringent access to credit, weak sales will persist and the industry's headache will linger," he said.

The report comes on the heels of yesterday’s news from the National Association of Realtors that existing home sales fell even more sharply in July, declining 27.2 percent from the previous month. Taken together, the two reports raise concerns that the economic recovery may be stalling out and the housing market headed for a “double-dip” second downturn.

Most analysts had expected a slight rise in new home sales, despite the sharp drop in existing sales reported yesterday. The Commerce Department figures do need to be taken with a grain of salt, however; the department warns that monthly reports are subject to large margins of error and that several months of data are needed to reliably establish trends.

By comparison, the currently annual rate of new home sales is less than one-fifth the all-time high of 1,389,000 reported five years ago, in July 2005, at the peak of the housing market.

Call For Rates

800-419-1494

Speak to a lender now.

We will match calls to our toll free number with our network of lenders.

See Today's Rates

National Rates

Loan Type	Today	+/-
30 yr fixed	3.72
15 yr fixed	3.03
5/1 ARM	2.75

Rates may contain points

Compare Rates »

Browse Mortgage Rates

Featured Guides

Browse our comprehensive guides to popular topics related to mortgage and personal finance.

Real Estate Calculators

Mortgage Loan Directory and Information, LLC or Mortgageloan.com does not offer loans or mortgages. Mortgageloan.com is not a lender or a mortgage broker. Mortgageloan.com is a website that provides information about mortgages and loans and does not offer loans or mortgages directly or indirectly through representatives or agents. We do not engage in direct marketing by phone or email towards consumers. Contact our support if you are suspicious of any fraudulent activities or if you have any questions.

Mortgageloan.com is a news and information service providing editorial content and directory information in the field of mortgages and loans. Mortgageloan.com is not responsible for the accuracy of information or responsible for the accuracy of the rates, APR or loan information posted by brokers, lenders or advertisers.