New single-family home purchases surged nearly 29% in August from the previous year, jumping more than expected as homebuyers tried to lock in lower mortgage rates.
Redfin CEO Glenn Kelman argues the housing market is highly volatile but will positively impact the overall economy once it evens out.and high home prices edged prospective homebuyers out of the market.
New single-family home purchases rose nearly 29% to a seasonally adjusted annual rate of 685,000 units, the Commerce Department reported on Tuesday. Economists surveyed by Refinitiv expected new home sales — which account for a small percentage of total sales — to fall 2.2% last month.The median new house price climbed 8% from the year-ago period to $436,800 — the slowest increase since November 2020.
The surprise upside in new home sales may represent buyers trying to lock in a lower mortgage rate as the average 30-year fixed rate average dipped closer to 5% from earlier highs. "New home sales were way above expectations in August as homebuilders cut prices and mortgage rates pulled back a bit from June and July levels," said Bill Adams, chief economist for Comerica Bank. "With mortgage rates up making new highs again after the September Fed decision, August’s upside surprise in home sales is unlikely to be repeated."surged to 6.29% for the week ending Sept.