Wed, 24 Sep 2025

Wed, 24 Sep 2025 New home sales in US jump to fastest pace in three years

Sales of new homes in the US surge more than expected as builders offered their discounts to lure in buyers.

* US new single-family home sales rose 20.5% in August to an annualized rate of 800,000 units, exceeding economists' forecasts.
* The surge was driven by price discounts and other incentives offered by builders, as well as easing borrowing costs ahead of a potential Federal Reserve interest rate cut.
* However, the increase may be overstated due to volatility in new home sales data, and analysts caution that the housing market remains persistently frozen due to affordability constraints.
* Mortgage rates have started to inch down, contributing to the spike in new home sales, but still remain roughly double what many homeowners secured during the pandemic.
* Analysts warn that a weakening labor market and persistent home affordability challenges could keep the housing market in a state of paralysis.
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