Key facts
- New US single-family home sales rose 6.4% to 684,000 units in August, the highest since December 2025.
- The average rate on a 30-year fixed-rate mortgage was 6.95% last week, the highest since January 2025.
- The median new house price fell 5.8% year-over-year to $393,700 in August.
- It would take 8.5 months to sell the inventory of new homes at August's pace, down from 9.0 months in July.
Sales of new US single-family homes surged to an eight-month high in August, driven by price cuts and incentives, according to data from the Commerce Department's Census Bureau. The seasonally adjusted annualized rate of sales increased 6.4% to 684,000 units, the highest level since December 2025. This figure surpassed economists' expectations of 615,000 units.
Regional variations were significant, with sales soaring 84.9% in the Midwest and rising 6.9% in the South. However, the Northeast saw a 36.1% plunge, and the West experienced a 15.2% decline. Year-over-year, sales were down 2.0% in August.
The housing market faces headwinds from rising mortgage rates, exacerbated by the US-Israeli war with Iran, which has driven up energy prices and longer-term Treasury yields. The average rate on a 30-year fixed-rate mortgage reached 6.95% last week, a level not seen since January 2025, according to Freddie Mac data.
Despite price reductions and incentives offered by builders, the inventory of unsold new homes remains substantial. The supply of new houses on the market was unchanged at 483,000 units, with over half still under construction. At the current sales pace, it would take 8.5 months to sell the existing inventory, a slight decrease from 9.0 months in July. A National Association of Home Builders survey indicated a considerable deterioration in builders' expectations for home sales over the next six months.