AI Data Insight
The month-over-month growth rate of US new home sales in Q1 2026 plummeted by 17.6%, a significant expansion from the previous drop of -1.7% and falling far below market expectations. Despite a decline in mortgage rates, extreme winter weather and a wait-and-see economic atmosphere froze buying sentiment, leading to an inventory buildup. Moving forward, attention must be paid to whether deferred buying demand returns in the spring, as well as the medium-term test that a softening labor market poses to the housing market.