July new home sales comes in at 652,000, median home price falls

Market Overview - New home sales in July reached a seasonally adjusted annualized rate of 652,000 units, exceeding expectations of 632,000 units [1] - July's new home sales decreased by 6% month-over-month and 8.2% year-over-year [1] - June's new home sales were revised upwards to 656,000 units from an initial 627,000 units [1] Interest Rates and Pricing - July's new home sales reflect signed contracts when mortgage rates were above 6.75% [2] - The median price of a new home sold in July was $438,000, a decrease of 5.9% year-over-year [2][3] - Builders are lowering prices and buying down mortgage rates [3] Supply and Demand - Builder sentiment report for August indicates increased buyer traffic, potentially aided by lower interest rates [3] - The supply of new homes decreased to a 9.2-month supply, down from 9.8 months [3] - A balanced market requires a healthy supply [4]