U.S. new single-family home sales spiked sharply in August, growing by 20.5% month-over-month compared to the estimate for a drop of 0.3%. Sales totaled 800,000 homes on a seasonally-adjusted annualized basis, well above the estimate of 650,000.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The strong demand comes despite median sales prices rising by 4.7% from July to $413,500 and 1.9% year-over-year.
Mortgage Rates at 11-Month Low
With mortgage rates falling since July, the housing market is seeing renewed buyer interest. The 30-year fixed-rate mortgage currently sits at 6.37%, the lowest level since October 2024. Further rate cuts from the Fed, which cut by 25bps last week, could decrease the rate even more.
The data adds to a growing narrative that the housing market, while far from booming, is stabilizing after months of weakness. That offers a potential boost for broader economic growth heading into the end of the year.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.