US New Home Sales Surged In March As Mortgage Rates Tumbled, But…

New home sales soared 7.4% MoM in March (dramatically better than the +1.3% MoM expected), lifting sales up 6.0% YoY…

But…

While new home sales soared amid the tumbling mortgage rates, April has seen rates surge back up to 7.00%, suggesting this sudden sales spike will be short-lived…

And if confirmation was needed, the more timely ‘mortgage applications’ data shows a major plunge in the last two weeks…

…and if you’re hoping for lower rates to keep the American Dream alive, that will likely come at the cost of a recessionary environment…

…not exactly a great background for homebuyers, whose sentiment already languishes at record lows…