SALES of new single-family homes in the United States fell by 6.8 per cent in April to 683,000 as higher mortgage rates began to take their toll, government figures show.
''The economy's tempo has changed,'' said Robert Barr, chief economist at the US Chamber of Commerce. ''After the frenetic flash dancing of late last year, households are moving to a slower, softer beat.'' While too much should not be made of a single month's figures, analysts said the outlook for the housing industry was worsening. ''Many families won't be able to qualify for loans as mortgages become more expensive,'' said Michael Carey, an economist at Maria Fiorini Ramirez, a research firm in New York.
In April, the average rate on a 30-year fixed mortgage increased to 8.32 per cent from 7.68 per cent during March. Last week the rate averaged 8.53 per cent. Mortgage rates are higher because of the ripple effect from the Federal Reserve's decision to raise the rate on overnight bank loans four times this year.
