October 28th, 2009 by 
U.S. New Home Sales numbers came out this morning and came in down 3.6% from last month, to a seasonally adjusted annual rate of 402,000, lower than expected.
The revised August 2009 annual rate was 417,000 so this months report is trending the wrong way for anyone looking for signs of a recovery. The annual rate of 402,000 is 7.8% below the September 2008 rate of 436,000.
Mortgage applications also decreased during the most recent week by 12.3% from the prior week, another lack of a sign confirming an economic recovery, that should be of concern.
With the $8,000 New Home Buyer tax credit due to expire at the end of November and both New Home Sales and Mortgage applications declining already, I would expect there to be an increasing decline in the numbers over the next several months. At the least, it’s probably too close to the tax credit expiration for any new homes to be started that will allow for any additional benefit.
