New single-family home sales in the US plummeted 13.7% in May to 623,000 units, significantly below expectations and previous averages. High mortgage rates, averaging around 7%, are cited as the primary cause, impacting affordability and buyer confidence. The increased supply of new homes, reaching a 9.8-month supply, further reflects the slowdown. This decline follows recent reports from home builders highlighting the negative impact of high interest rates on sales.

Prepared by Christopher Adams and reviewed by editorial team.