In the United States, there was an increase in sales of new homes last month.
The mentioned result is largely related to the drop in mortgage rates. Also, the July data are evidence that the real estate market in the United States is currently on a recovery trajectory.
Last month, new home sales in the US were seasonally adjusted at 739,000 units. This indicator showed an increase of 10.6% compared to the result for the same period in 2023. Also, the indicator mentioned has been the highest since May last year. The US Commerce Department’s Census Bureau released the corresponding information on Friday, August 23. Moreover, July’s new home sales growth turned out to be the sharpest since August 2022.
The sales pace for June was revised higher to 668,000 units from 617,000 units that were previously reported.
It is worth noting that economists surveyed by the media expected new home sales in July in the United States would amount to 625,000 units. The share of this category in the total structure of home sales in the US is more than 10%.
The average rate on a 30-year fixed-rate mortgage this week in the United States is at 6.46%. This figure is the lowest since May last year. Also, the current 30-year fixed-rate mortgage is more than 0.5% lower than in the same period of 2023. The relevant data was published by mortgage finance agency Freddie Mac.
The interest rate cut expected by markets and experts by the Federal Reserve in September is likely to be a factor contributing to the growth of consumer activity in the United States real estate market.
As we have reported earlier, Real Estate Loans Provoke Doubts in Canadian Banks’ Profits.
