U.S. new-home sales reach an eight-month high as builders cut prices

Sales of newly built single-family homes in the United States rose 6.4% in August to a seasonally adjusted annual rate of 684,000, according to the Commerce Department. That was the strongest pace since December 2025 and above economists’ expectations overall. The increase suggests that some buyers are responding to price reductions, mortgage-rate incentives and other concessions offered by builders. The median price of a new home fell 5.8% from a year earlier to $393,700, and most homes sold during the month were priced below $500,000. Despite the monthly gain, the market remains under pressure. Sales were still 2% lower than in August 2025, and the average 30-year mortgage rate had climbed to about 6.95%, its highest level since January 2025. Builders are also carrying a large supply of unsold homes: inventory remained at approximately 483,000 units, more than half still under construction. At August’s sales pace, it would take about 8.5 months to clear that supply. The data show that demand has not disappeared, but buyers are increasingly relying on discounts and financing incentives to manage affordability. Higher borrowing costs and elevated inventory are likely to keep builders cautious in the coming months. For more information click here.