Key facts
- New single-family home sales in the U.S. decreased by 10.5% in July.
- The seasonally adjusted annualized rate for new home sales was 607,000 units in July.
- The median price for a new home in July was $393,800, a 0.9% decrease from the previous year.
- High mortgage rates are a significant factor impacting the housing market.
- The months of supply for new homes reached 9.6 months in July.
Sales of new single-family homes in the U.S. fell 10.5% in July to a seasonally adjusted annual rate of 607,000 units, missing economists' expectations. This decline, driven by elevated mortgage rates and prices, continues a trend of caution among builders regarding new housing permits.
The median price for a new home in July was $393,800, down 2.3% from June and 0.9% below the July 2025 median. This was the lowest level recorded since July 2021. Homebuyers are grappling with affordability constraints and economic uncertainty, compounded by elevated mortgage rates.
Builders are increasingly using incentives and price cuts to make monthly payments affordable, putting pressure on closing prices. Some of the shift in median sales price also reflects builders constructing and selling smaller, lower-priced homes. The number of new homes for sale rose to 488,000, representing 9.6 months of supply at July's slower sales pace, a high figure by historical standards.
Homebuilders entered the spring selling season with cautious optimism, but rising mortgage rates and geopolitical tensions have led to choppy demand. While pockets of strength remain, many builders reported uneven demand throughout the year.