What gives? New home contracts fell sharply in July, but those for existing homes barely budged. The WSJ's Nick Timiraos has some ideas:
First, builders have been more aggressive in raising prices.
Second, builders are more reliant on mortgage-dependent buyers, while the resale market has seen a surge in all-cash purchases.
Third, some hustled to close on a purchase before rates rose, but you can't buy a home where construction isn't yet complete. So to the extent higher rates pull forward demand, it's likely to be seen in the resale market, not in new homes.