A slump in the country’s building permits, housing starts, and sales are seen in the second quarter of this year.
Stifel Chief Economist Lindsey Piegza explains that the slowdown is not a good sign of the country’s economy. She further explains that weakness in the housing market is a red flag on the country’s sustainability of domestic growth.
Adjusted to a seasonal rate of 631,000, the sale of new single-family homes has fallen to 5.3% in June, which is considered an eight-month low. The National Association of Realtors (NAR) reports that home sales slipped by 0.6%, which compared to June of 2017 is a slip of 2.2%.
Piegza further explained that the slowdown of the housing market impacts consumer confidence and spending, including lending and construction activities.
Sam Khater, Freddie Mac’s Chief Economist also pointed out that affordability in housing continues to be a pressing issue across many markets in the country.