US New Home Sales Rise 1.6% in June 2026

New single-family home sales in the United States rose 1.6% in June to a seasonally adjusted annualized rate of 628,000 units. This rebound reversed a two-month decline and exceeded economist estimates of 607,000 to 610,000 units. Despite the monthly increase, sales fell 5.6% compared to June 2025, and the year-to-date pace is the lowest since 2017.

Growth was driven primarily by the South, where sales surged 9.9% and the region accounted for roughly 66% of new sales over the last year. In contrast, sales in the West plummeted 22.4%. The median new house price dropped 2.7% year-over-year to $398,300, the lowest level since July 2025. To attract buyers, builders have utilized price discounts and constructed smaller, lower-priced homes to align with current affordability.

Market recovery remains tempered by mortgage rates, which reached 11-month highs between 6.58% and 6.69% due to inflation and geopolitical instability involving Iran. These costs, combined with weak household formation where young adults are sharing homes rather than buying, have sidelined many first-time buyers. Inventory of new homes fell 3.2% from the previous year to 485,000 units, representing 9.3 months of supply. The United States Census Bureau reported the data as bond markets anticipate potential interest rate hikes from the Federal Reserve in September.