New home sales in the United States fell in July to a seasonally adjusted annual rate of 607,000 units, compared to 685,000 units in June, after data was revised upward.
This reading was below the expectations of economists polled by Reuters, as they expected sales to decline to about 620,000 units, reflecting greater weakness than expected in the housing market.
Although new home sales represent a limited portion of total home sales in the United States, they are characterized by significant fluctuations from month to month. The recent decline comes in light of continuing pressures faced by buyers, with rising home prices and financing costs.
The average price of a new home in July was $393,800, a decrease of 0.9% compared to the same period of the previous year, but this decrease was not enough to offset the increase in the cost of borrowing.
The average interest rate on a 30-year mortgage, which is the most common in the United States, stabilized at about 6.77% during the week ending August 14, close to its recent high of 6.81% at the end of July.
