New home sales fall 4.7 in August
Prior three months39; sales revised higher
Median house price drops 4.6 to 420,600 from year ago

WASHINGTON, Reuters Sales of new U.S. singlefamily homes fell less than expected in August and could regain momentum in the months ahead as declining mortgage rates and house prices stimulate demand.

The report from the Commerce Department on Wednesday also showed new home sales were higher than previously estimated in the prior three months. The Federal Reserve last week cut interest rates by 50 basis points to the 4.755.00 range, the first reduction in borrowing costs since 2020. Mortgage rates have dropped to the lowest level in more than 112 years and previously owned homes remain in short supply on the market.

We expect lower mortgage rates, pentup demand and a still relatively scarce supply of existing homes despite some recent increases to support modest growth in new home sales over the balance of 2024 and into 2025, said Nancy Vanden Houten, lead U.S. economist at Oxford Economics.

New home sales decreased 4.7 to a seasonally adjusted annual rate of 716,000 units last month, the Commerce Department39;s Census Bureau said. The sales pace for July was revised higher to 751,000 units from a previously reported 739,000 units. There were also upward revisions to May and June sales data.

Economists polled by Reuters had forecast new home sales, which account for 15.6 of U.S. home sales, falling to a rate of 700,000 units. New home…