High Mortgage Rates Hurt New Home Sales In August

The sale of new homes declined in August as high mortgage rates have continued to hinder demand.

A for sale sign in front of a townhouse on a city street.
(Image credit: Getty Images)

New single-family home sales fell in August as the average mortgage rate topped 7%, according to a new report by the National Association of Home Builders (NAHB).

Sales of newly built, single-family homes in August declined 8.7% to a 675,000 seasonally adjusted annual rate from an upwardly revised July reading, according to the report, which is based on data from the Housing and Urban Development Department and the Census Bureau. New home sales in August grew 5.8%, however, when compared to a year ago.

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Joey Solitro

Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.