Despite higher mortgage rates, sales of newly built, single-family homes in July increased 4.4% to a 714,000 seasonally adjusted annual rate. This is an increase from a downwardly revised reading in June according to newly released data by the United States Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in July was up 31.5% from a year ago.
A new home sale occurs when a sales contract is signed or a deposit is accepted — the home can be in any stage of construction. In addition to adjusting for seasonal effects, the July reading of 714,000 units is the number of homes that would sell if this pace continued for the next 12 months.