New home sales soar 20% in August to a three-year high

Group 1 - Sales of newly built homes increased by 20.5% in August compared to July, reaching the highest level since January 2022, and marking the largest one-month gain since August 2022 [1] - Sales in August were 15.4% higher than in August 2024, indicating a strong year-over-year performance [1] - The average rate on the 30-year fixed mortgage was 6.63% at the beginning of August, which did not fluctuate significantly during the month [2] Group 2 - A notable decline in mortgage rates began in September, dropping to a three-year low of 6.13% before the Federal Reserve cut its lending rate [2] - The increase in August sales is surprising given that mortgage rates had not yet fallen, suggesting potential anomalies in the data [3] - The margin of error for new home sales is significant, and further revisions and September data will be necessary to confirm the trends [3]