New home sales in August were reported at 684,000, above market forecasts for 615,000, representing a 6.4% monthly increase, according to data from the U.S. Census Bureau. Compared to August 2025, sales were 2.0% lower. The monthly increase largely came from higher sales in the Midwest and South, while sales declined in the Northeast and West. The seasonally adjusted estimate of new homes for sale was 483,000, unchanged from the previous month and down 2.0% year over year. August’s supply represented an 8.5 months supply at the current sales rate. The median sales price rose 0.4% over the month to $393,700, but remained down 5.8% year over year.
The ABA Office of the Chief Economist believes that the August reading of new home sales suggests resilient demand despite affordability pressures stemming from elevated mortgage rates and new home prices. Mortgage rates ended August at 6.66%, according to Freddie Mac. The monthly increase may be partially attributed to buyers anticipating higher rates later in the year, but overall sales remain down from year ago levels as rates continued their upward trend. As the housing market transitions into the fall season, residential construction and mortgage loan demand could fall as the peak homebuying period comes to an end.
