A Frigid February for New Home Sales
A government report shows that sales fell to the slowest pace in 13 years, while durable goods dropped unexpectedly Reports released Mar. 26 show that two key segments of the U.S. economy housing and manufacturing continue to take it on the chin amid the ongoing U.S. slowdown. The reports helped send major equity indexes lower on Mar. 26, with the Dow Jones industrial average down nearly 1% in late morning trading. Optimism engendered by a better than expected report on February existing home sales released Mar. 24 was not supported by data on sales of newly built single-family dwellings during the month. According to a government report, U.S. new home sales fell 1.8% to a 590,000 unit annual rate in February, down from an upwardly revised 601,000 in January [up from 588,000 before] and 13 years low. Markets expected a drop in sales, to 579,000. New home sales were down 29.8% from last February. Good News for Housing? Sales were down in the Northeast and Midwest, but up in the South