U.S. New-Home Sales Hit Six-Month Low in July

New-home sales in the United States fell to a six-month low in July, with contract signings for new single-family homes decreasing 10.5% to an annual rate of 607,000. The decline indicates that high mortgage rates continue to suppress buyer demand, even as builders attempt to stimulate the market through price reductions and incentives.

Market performance diverged sharply by region and price point. The Midwest saw a nearly 43% drop, marking its lowest level since 2012, and the South experienced a 13% slump, while the West and Northeast reported increases. The median sales price fell 0.9% year-over-year to $393,800, and the overall supply of new homes decreased 1.6% to 488,000.

Corporate results highlight a split between market segments. D. R. Horton Inc. expects lower sales for affordable starter homes, reflecting the sensitivity of first-time buyers to borrowing costs. In contrast, Toll Brothers Inc. reported an increase in contracts, noting that luxury buyers remain less affected by mortgage rate fluctuations.