New home sales fall in August despite declining mortgage rates

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New home sales fall in August despite declining mortgage rates
Census BureauSeasonally Adjusted RateConsensus Expectations
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New home sales dropped in August from the previous month as would-be homebuyers wait for mortgage rates to fall further.

Sales of new homes fell 4.7% in August to a seasonally adjusted rate of 716,000 units, down from July’s revised rate of 751,000,on Wednesday. The reading on an annual basis rose 9.8% from last August and exceeded Bloomberg consensus expectations for sales to reach 700,000 unit pace.

While mortgage rates are still high, they have moved downward since May as investors anticipated the Fed’s first interest rate cut. The average NOVATO, CALIFORNIA: Sales of new homes fell 4.7% in August to a seasonally adjusted rate of 716,000 units, down from July’s revised rate of 751,000,on Wednesday. The reading on an annual basis rose 9.8% from last August and exceeded Bloomberg consensus expectations for sales to reach 700,000 unit pace. Meanwhile, builders are penciling out more projects as borrowing costs are expected to move lower, with housing starts bouncing back in August.

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