New home sales jump

Core Insights - New home sales in August reached an annualized rate of 800,000, significantly exceeding the expected 650,000, marking a 20.5% increase from July and a 15.4% increase from August 2024 [1][5]. Sales and Pricing - The average price of a new home sold in August was $413,500, which is 4.7% higher than July and 1.9% higher than August 2024 [3][4]. - Despite high mortgage rates in August, which were over 6.5%, the sales numbers indicate strong demand, suggesting buyers were active in the market prior to the anticipated drop in rates [2][4]. Inventory and Builder Sentiment - The inventory of new homes has decreased to a 7.4-month supply from a 9-month supply in July, indicating a tightening market [4][5]. - Builder sentiment remains low despite the increase in sales and prices, suggesting potential underlying challenges in the market [5].