According to the National Association of Manufacturers’ (NAM) Monday Economic Report for this week, new single-family home sales fell sharply in June – down 8.1% from 642,000 units at the annual rate to 590,000 units in June – the weakest reading since April 2020. Sales were lower in every region except for the Midwest. Higher mortgage rates and affordability have sharply inhibited new home sales YTD. Builders continue to cite lingering inflation, supply chain disruptions and workforce shortages as significant challenges in the housing market. Single-family home sales have fallen 17.4% YoY, down from 714,000 units in June 2021.
According to the Conference Board, consumer confidence fell to a post-pandemic low, dropping for the third straight month from 98.4 in June to 95.7 in July. Americans felt less upbeat in their assessments of the current and future economic environment in July. Consumers remain anxious about inflation and purchasing intentions for larger items.
The percentage of respondents suggesting that business conditions were “good” decreased from 19.5% to 17.0%, while the percentage feeling that conditions were “bad” rose from 22.8% to 24.0%. At the same time, the percentage of respondents suggesting jobs were “plentiful” dipped from 51.5% to 50.1%, while those saying jobs were “hard to get” increased from 11.6% to 12.3%.