US new-home sales tumbled to a seasonally adjusted annual rate of 607,000 units in July, the weakest reading since January, representing a 10.5% decline from June. Economists had forecast sales between 615,000 and 620,000, leaving the actual result well below even the low end of expectations. The 30-year fixed mortgage rate averaged 6.54% in July, up slightly from 6.49% in June, while the median price of new homes fell 2.3% to $393,800. The inventory of new homes for sale climbed to 488,000 units, representing a 9.6-month supply at the current sales pace, far above the roughly six months considered balanced for the market.
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