US new-home sales jump 7.9% in August

By Qiong (June) Zhang55 Comments

US new home sales jump 7.9% in August to 421K, biggest one-month gain since January.  That comes after sales plunged 14.1% in July to a 390,000 annual rate.

The rebound in sales could ease worries that higher mortgage rates have started to dampen sales. Home builders remain more confident in the market than they’ve been in 8 years.

New-homes sales were 12.6% higher in August than a year ago. The number of new homes available for sale rose 3.6% from July to 175,000.

The median price of a new home sold in August fell 0.7% from July to $254,600.

Sales rose in all but one region of the country in August, increasing 19.6% in the Midwest, 15.3% in the South and 8.8% in the Northeast. Sales plunged 14.6% in the West, the second straight month of double-digit declines.

Many economists say the housing recovery should withstand the recent rate increase. Mortgage rates are still quite low by historical standards.


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