US new home sales fall 10.5% in July as high rates and prices weigh
Macro
The US Commerce Department reported on the 25th that new single-family home sales in July came in at a seasonally adjusted annual rate of 607,000 units, down 10.5% from the previous month. Economists polled by Reuters had expected 620,000 units. The median sales price of a new home in July was $393,800, down 0.9% from a year earlier. High borrowing costs remain the main factor prolonging the housing market slump, and according to the Mortgage Bankers Association, the contract rate on a 30-year fixed mortgage stood at 6.77% in the week ending August 14, only slightly below the recent high of 6.81% hit at the end of July.
