The new home sales number reported today by the Government’s Census Bureau with “seasonal adjustments” is simply not believable.
If you look at this link and scroll down to the “Not adjusted” section, you’ll see TOTAL of 9,000 more homes nationwide were sold in May vs. April: May New Home Sales According To The Census Bureau
Furthermore, you’ll see the average sales price soared nearly 5%. This is not consistent at all with past data correlations when rising prices curtail sales.
Finally, we know that 93% of all new home buyers use a mortgage to buy a new home. New home sales are based on contract signings, When a contract is signed, the buyer then applies for a purchase mortgage. Purchase mortgage applications plunged in May.
New home sales data is compiled and reported by the Govt’s Census Bureau. Like all other Govt reports, this one is simply not believable.