Mortgage Rates Spike as US New Home Sales Soar To 17-Month Highs In July

Existing home sales dropped, but new home sales surged by 4.4% month-over-month, a 31.5% annual increase. The gap between new and old home sales widens. With a decreasing supply, new home prices rose in July despite higher mortgage rates. The current disparity between standard 30-year mortgage rates and what homeowners pay is the largest since the 1980s, making new homes, bolstered by builder subsidies, a primary option. How long can homebuilders maintain this trend without impacting profitability?