June Sees First Decline in New Home Sales Since February

Sales of new U.S. homes declined by 2.5% in June, the first drop in four months, as high mortgage rates and limited supply continue to deter potential buyers. Despite the decline, sales remain up 23.8% from a year ago. The lack of inventory has also weighed on existing home sales, which fell 3.3% in June compared to the previous month. The median price for a new home fell to $415,400, but it is still higher than pre-pandemic levels. The Federal Reserve's interest rate hikes have contributed to the rise in mortgage rates, making it more difficult for buyers to enter the market.