Strong demand, low interest rates and fewer existing homes for sale helped contribute to an uptick in new home sales in August even as home prices continue to rise. Sales of newly built, single-family homes in August rose 1.5% to a 740,000 seasonally adjusted annual rate from an upwardly revised reading in July, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Sales are up 2.4% on a year-to-date basis.
"New home sales stabilized in late summer following a cooling trend that took hold last winter," said Chuck Fowke, chairman of the National Association of Home Builders (NAHB). "Builder sentiment remains strong and housing demand is being supported by ongoing low mortgage interest rates and a shortage of existing home inventory."