US new home sales jump 20% in August
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The news: New home sales in the US jumped unexpectedly in August, hitting the fastest pace since early 2022.
The numbers: Data released by the US Census Bureau on Wednesday showed new home sales shot up 20.5% to a seasonally adjusted annualised rate of 800,000 units in August. The pace exceeded all estimates in a Bloomberg economist survey.
Inventory of new homes for sale fell to 490,000 units in August, reducing a large oversupply of new homes on the market.
The median sales price of new houses sold in August 2025 was USD413,500 ($626,478), 4.7% above the July 2025 price of USD395,100, and is 1.9% above the August 2024 price of USD405,800.
The sales pace for July was revised higher to a rate of 664,000 units from a previously reported pace of 652,000 units.
The context: New home sales reflect contract signings, which tend to occur around one month before a transaction is complete. Wednesday’s figures capture the beginning of a recent slide in US mortgage rates as the Federal Reserve prepared to begin a cycle of monetary policy easing.
The Fed last week cut its benchmark rate by 25 basis points as expected to 4.00%-4.25% and projected a steady pace of reductions for the remainder of the year.
The source: US Census Bureau
