Sales of newly built single-family homes in the United States rose slightly in June but remained well below expectations, as elevated mortgage rates and affordability concerns continued to weigh on demand.
The U.S. Census Bureau and the Department of Housing and Urban Development reported Thursday that new home sales increased 0.6 percent in June to a seasonally adjusted annual rate of 627,000. Economists had expected a rate of 650,000. Sales were 6.6 percent below the June 2024 level.
The June figure marks the second consecutive month of subdued activity, matching May’s revised pace of 623,000 and representing the slowest two-month stretch for new home sales since October 2024.
Mortgage rates have remained elevated for much of the year, with average 30-year fixed rates hovering near or above 6.8 percent in recent months. The Federal Reserve has kept its benchmark interest rate unchanged since December 2024, citing uncertainty around inflation and financial conditions.
President Donald Trump has repeatedly urged the Fed to begin lowering rates, arguing that tighter policy is holding back housing, investment, and consumer demand. Trump has levied harsh personal criticism against Fed chairman Jerome Powell, nicknaming him “too late” and accusing him of holding rates high for political reasons.
The number of new homes for sale at the end of June rose to 511,000, the highest level since 2007. At the current sales pace, that represents a 9.8-month supply—up from 9.7 months in May and well above the historical norm. According to housing analyst Bill McBride of Calculated Risk, a typical balanced market carries between 4 and 6 months of supply. The all-time high was 12.2 months in January 2009; the record low was 3.3 months in August 2020.
The median sales price of a new home declined to $401,800 in June, down 4.9 percent from the prior month and 2.9 percent from a year earlier. The average sales price fell to $501,000, a 2.0 percent drop from May.
Completed inventory—homes that are built and ready for occupancy—rose to 114,000 units, up 21.3 percent from June 2024, according to the National Association of Home Builders.
“The past two months have been the slowest sales pace since October of last year,” the NAHB said in a statement. It noted that mortgage rates averaged above 6.8 percent in June, limiting purchasing power for many first-time and middle-income buyers.
Regionally, June sales rose 5.1 percent in the South and 6.3 percent in the Midwest. Sales declined 8.4 percent in the West and 27.6 percent in the Northeast. On a year-to-date basis, sales are down in all four regions compared with the same period in 2024.
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