FX.co ★ US New Home Sales Surge

Sales of new single-family homes in the United States experienced a robust increase of 10.9% month-over-month, reaching a seasonally adjusted annual rate of 743,000 units. This significant rise follows a revised 2.6% gain recorded previously and surpasses market forecasts, which anticipated a more modest figure of 692,000 homes sold. Marking the sharpest increase since August 2022, this jump elevated home sales to their highest level in six months. Notably, this surge occurred despite a significant rise in mortgage rates, as economic policy uncertainties led to a spike in long-term Treasury yields. Regional data shows the South saw an 11.7% increase in sales to 478,000 units, while the Midwest experienced a substantial 35.5% rise to 84,000 units. Conversely, sales in the Northeast saw a considerable decline of 14.8%, dropping to 23,000 units. The median home price increased by 0.8% to $407,200. Meanwhile, housing inventory stood at 504,000 units, representing an 8.1-month supply at the current sales pace.