U
S single-family home sales declined in August, but favorable market conditions could boost demand in the coming months. According to the Commerce Department's Census Bureau, new home sales dropped 4.7% to a seasonally adjusted annual rate of 716,000 units last month.

    This decline was less severe than economists' forecasts, which predicted a rate of 700,000 units. Despite the monthly drop, new home sales rose 9.8% year-over-year in August, accounting for over 10% of US home sales.

    The average 30-year fixed mortgage rate fell to 6.09%, its lowest since February 2023, and the median new house price decreased by 4.6% to $420,600 compared to last year. The Federal Reserve's recent interest rate cut may also contribute to increased demand for housing in the months ahead.