New home sales rebounded modestly in June, recovering some of the previous month's decline, though activity remained below year-ago levels as elevated mortgage rates and affordability challenges continued to weigh on demand. According to the latest Census Bureau and HUD data, sales of new single-family homes rose to a seasonally adjusted annual rate of 628,000 , up 1.6% from May but 5.6% lower than one year earlier. In the bigger picture, this sector has been broadly flat ever since the post-covid volatility died down in early 2023. Inventory edged slightly lower during the month. The number of new homes for sale slipped to 485,000 , down 0.2% from May and 3.2% below June 2025 levels. At the current sales pace, that translated to a 9.3-month supply, down from 9.4 months in May but up from 9.0 months a year earlier. Home prices declined in June. The median sales price fell to $398,300 , down 3.3% from May and 2.7% below its level a year ago. The average sales price also moved lower, dropping to $475,400 , a 9.5% monthly decline and 6.5% below June 2025. As a reminder, home price declines in this data set are not necessarily apples to apples as they can be driven by builders building smaller homes among other variables.
Refis Take a Back Seat as Purchase Demand Rebounds
Mortgage application activity rebounded last week as stronger home purchase demand offset a modest decline in refinancing, even with borrowing costs climbing to their highest level since last August. The Mortgage Bankers Association (MBA) reported a 1…