New home sales in the U.S. increased by 1.6% in June to a seasonally adjusted annual rate of 628,000, surpassing expectations of 609,000. Despite this monthly gain, sales are still down 5.6% compared to last year and remain 41.7% lower when adjusted for population growth since 1963. The median price of new homes fell to $398,300, the lowest in nearly a year, with inflation-adjusted prices at their lowest since 2014. Mortgage rates averaged 6.49% for a 30-year fixed loan, the highest since last August, impacting affordability. This data suggests a mixed housing market with some recovery but ongoing challenges due to high mortgage rates and population growth outpacing sales.
