New Home Sales Plunge as Consumer Sentiment Slips

The Census Bureau just reported that, in November, the sales of New Homes plunged 11%. October’s downwardly revised annualized pace of 945k, down from 999k, fell to an annualized pace of 841k last month. Analysts were expecting 995k. Earlier, the FHFA announced that its October House Price Index rose by a greater-than-expected 1.5% and is up 10.2% year-over-year.

Also just out was the University of Michigan’s final, December report on Consumer Sentiment. The Sentiment Index fell to 80.7 from 81.4 versus an estimated dip to just 81.1. The Expectations component was little changed at 74.6. Meanwhile, Treasury prices have edged lower and the Ten-Year’s yield has moved up to 96 basis points with the Long Bond at 1.71%. Gold is up about $15 to $1,876 while crude oil has managed a slight rally to $47.60.