A
ugust new‑home sales jumped 20.5 % to a seasonally adjusted annualized pace of 800,000 units, the Census Bureau reported. The July figure was revised up to 664,000 units from 652,000. Economists had projected a slower pace of about 650,000 units, and year‑over‑year sales rose 15.4 %. New‑home transactions, counted when contracts are signed, are highly volatile and often see large revisions.

    The surge coincides with falling mortgage rates. The Federal Reserve cut its overnight benchmark by 25 basis points to a 4.00 %–4.25 % range and indicated a steady stream of reductions for the rest of 2025. Freddie Mac data show the 30‑year fixed‑rate mortgage fell to an 11‑month low of 6.26 %, down from roughly 7.04 % in mid‑January and easing gradually since mid‑July. The 30‑year rate is the most widely tracked and represents the bulk of new‑home financing.

    However, the labor market has softened. Non‑farm payroll growth averaged only 29,000 jobs per month in the three months ending August, compared with 82,000 in the same period a year earlier. This slowdown could limit the extent to which lower rates boost new‑home demand. New‑home sales account for about 14 % of all U.S. home sales, so shifts in this segment can signal broader housing market trends.