New home sales climbed 7.9% month-over-month in August to an annualized rate of 421,000.
This beat expectations for a 6.6% rise to an annualized rate of 420,000.
But last month’s number was revised down to show a 14.1% fall to 390,000.
This compares to an initial reading of a 13.4% fall to an annualized rate of 314,000 in July. There was also a huge downward revision to June’s number.
The median sales price of new homes was $US254,600, while the average sales price was $US318,000. This is down from the median and average price of new homes in July. Paul Diggle at Capital Economics pointed out that new home prices will slow more than existing home prices.
Meanwhile, the stock of new homes for sale at the end of August stove at 175,000, representing five months’ supply at current sales pace.
New home sales have been impacted by a surge in mortgage rates, with the 30-year rate up 4.5%, according to the Freddie Mac’s September 19 primary mortgage market survey.
Some have noted tha last month’s disappointing new homes sales report is one of the reasons that the Fed delayed tapering its $US85 billion monthly asset purchase program.
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