Sales of newly built homes dropped last month as mortgage rates remained elevated.
New home sales, which make up only about 10% of the market, fell 11.3% in May from the prior month, to 619,000, according to government data released Wednesday. That was the steepest monthly decline since September 2022 and marks the lowest level since November.
May’s level was below the 647,500 economists projected in a FactSet poll. Mortgage rates soared to the highest level of the year in early May and have since trended down.
This story is developing and will be updated.