FX.co ★ US New Home Sales Surge to 6-Month High

In the latest report, the sales of new single-family homes in the U.S. have experienced a notable increase of 7.4% compared to the previous month. This brings the seasonally adjusted annualized rate to 724,000 units, marking the highest level in six months. The rise significantly surpassed market forecasts of 680,000 homes. This growth aligns with a concurrent rise in mortgage applications, influenced by a drop in benchmark borrowing costs. Regionally, the South witnessed the most significant growth, with sales climbing 13.6% to 483,000 units, followed by a 3% increase to 69,000 units in the Midwest. These gains offset reductions in the Northeast, which saw sales decline by 22.2% to 28,000 units, and a 1.4% decrease to 144,000 units in the West. Additionally, the median home price experienced a slight reduction of 1.9%, now standing at $403,600. As for housing inventory, it remains steady at 503,000 units, which corresponds to an 8.3-month supply at the present sales pace.