New home sales plummeted nearly 20% in January to their lowest level since 2022, reaching a seasonally adjusted annual rate of just 587,000 units.

New home sales plummeted nearly 20% in January to their lowest level since 2022, reaching a seasonally adjusted annual rate of just 587,000 units. The sharp decline reflects mounting pressure on the housing market as affordability continues to deteriorate for prospective buyers. Despite some relief, the 30-year fixed mortgage rate remains elevated at 6.15%, keeping borrowing costs high and dampening demand. The median new home price held above $400,000 for the sixth consecutive month, settling at $400,500, though this represents the lowest level within that period. This contraction signals weakening consumer confidence in the residential real estate sector and suggests builders may face inventory challenges ahead as sales momentum slows significantly.