US New Home Sales Slip in July, But Outperform Forecasts

New home sales in the US slid in July, but by a narrower margin than anticipated by analysts. According to the Department of Commerce, sales of new US homes were at a seasonally adjusted annual rate of 652,000, down slightly from June's revised figure of 656,000. This was above the 630,000 level forecast by a consensus of analysts, but still notably lower than the rate a year ago. The median sales price of new houses sold was USD403,800 in July, down from USD407,200 in June.

Key Takeaways:

• New home sales in the US declined in July, but by a lesser extent than expected by analysts, with a seasonally adjusted annual rate of 652,000.
• The decline was slight, with sales decreasing from June's revised figure of 656,000.
• The median sales price of new houses sold dropped to USD403,800 in July, a decrease from USD407,200 in June.
• The 30-year fixed-rate mortgage rate hovered around 6.7% in July, down slightly from 6.8% in June.
• The overall market remained under pressure due to affordability concerns and higher mortgage rates.
• The National Association of Realtors warned that turnover remained sluggish, despite slightly lower mortgage rates.

Statistics:

• New home sales rate: 652,000 (seasonally adjusted annual rate) (Department of Commerce)
• Decline from June's revised figure: 4,000 (Department of Commerce)
• Median sales price of new houses sold: USD403,800 (Commerce Department report)
• July mortgage rate: 6.7% (average 30-year fixed-rate mortgage) (source not specified)
• June mortgage rate: 6.8% (average 30-year fixed-rate mortgage) (source not specified)
• Story of the market: Market weighed down by affordability concerns and higher mortgage rates.

Sources:

• Department of Commerce
• Briefing.com (consensus forecast of analysts)
• AFP (citing the National Association of Realtors)