Sales of new homes in December 2021 were at a seasonally adjusted annual rate of 811K. This is 11.9% above the revised November rate of 725K, but below the December 2020 data of 943K. An estimated 762K new homes were sold in 2021. This is below the 822K figure in 2020. The median selling price of ne…
Sales of new homes in December 2021 were at a seasonally adjusted annual rate of 811K. This is 11.9% above the revised November rate of 725K, but below the December 2020 data of 943K. An estimated 762K new homes were sold in 2021. This is below the 822K figure in 2020. The median selling price of new homes sold in December 2021 was $377,700, with an average selling price of $457,300. Although there is still a serious bounce effect in house sales, the upcoming period will still include the continuation of the pressure of high price increases and the rising mortgage rates with the rate hikes by the Fed. When the Fed intervenes by raising interest rates and selling more MBS off the balance sheet, there will be a reduction in demand due to the increased cost of access to finance. Therefore, it is also necessary to consider that front-loading demand will not follow in a similar way. On the other hand, downside risks to growth are also increasing. Therefore, it is more likely for the Fed to signal a down-to-earth tightening path tonight that is less aggressive and based on concrete facts. We will look at the extra work from the point of reducing the balance sheet assets. Kaynak: Tera Yatırım Hibya Haber Ajansı