09/29/2025
New Home Sales Surge to 3-Year High
In August 2025, new home sales in the U.S. jumped 20.5% to an annualized rate of 800,000 units, marking the fastest pace since early 2022. This surge defied expectations and was driven by:
Builder incentives: Discounts, mortgage rate buydowns, and other perks helped lure buyers back into the market.
Falling mortgage rates: The average 30-year fixed rate dropped to 6.26%, boosting affordability.
Improving inventory: More sellers entered the market, especially in the South, which accounted for the bulk of sales.
Despite the momentum, experts caution that the spike may be temporary. New home sales are volatile month-to-month, and affordability challenges still persist for many buyers.
You can read more from MSN1 or The Hill2.
Good News to Share with Reluctant Buyers
You're already well-aware that the real estate market's been unfriendly to buyers for several years now. Rising home prices and interest rates caused more than a few to postpone house hunting. However, recent data shows that the tide is turning for buyers in quite a few areas, including some numbers you can share with them.
Mortgage rates are down. Helping buyers compare early 2025 interest rates to current ones can be an eye-opener. For example, you can compare current rates for 30-year, fixed-rate loans to the 7% rates recorded during mid-January (according to Freddie Mac data).
Home prices are cooling. After several years of scary property price hikes, national home price growth is down to low single digits. And in some metro areas in the South and West regions, including some Texas and Florida cities, home prices are falling.
Wages are up by almost 4% annually, according to the Bureau of Labor Statistics (BLS). This means that the typical paycheck is rising faster than home prices right now, which helps make buying a little more affordable.4
This information is provided for Agents and professional use only and is not to be provided to a consumer or to the public. It is for informational purposes and is not a commitment. Rate and price may vary slightly due to occupation status, credit scoring, LTV, and ratios. Interest rates are subject to change. Contact your Mortgage Loan Officer for the most current rates. This is not a commitment to lend.
Links to Articles: 1. msn.com 2. thehill.com 3. brightmls.com 4. keepingcurrentmatters.com
