April new home sales fell to a 622,000 annualized rate, down 11.3% year-over-year, as mortgage rates climbed above 6.5%.
Sales of new U.S. single-family homes declined 6.2% in April to a seasonally adjusted annual rate of 622,000 units, driven by elevated mortgage rates and fading weather-related demand. The drop reversed gains from February and March, when milder temperatures boosted activity.
The decline was broad-based, with sales falling in the Northeast, South, and Midwest, while the West saw an increase. Year-over-year, new home sales plunged 11.3%. Mortgage rates, which dipped early in the year, surged after geopolitical tensions escalated in late February, reaching 6.51% last week.
Inventory rose to 489,000 units in April, up from 481,000 in March, adding pressure on builders and limiting new construction activity.