The number of available homes on the market is climbing with mortgage rates remaining high

The number of unsold new single-family homes in the US rose to 511,000 in June, the highest level since October 2007, following a small monthly increase in sales and continued high mortgage rates.
New home sales increased 0.6% to a seasonally adjusted annual rate of 627,000 units last month, according to the US Census Bureau. The May figure was unrevised at 623,000 units.
Reuters-polled economists had expected a rate of 650,000 units. Sales were down 6.6% compared to June 2024.
New home sales, which account for just over 10% of total US home transactions, are counted at the time of contract signing. The data is subject to monthly volatility and revisions.
The 30-year fixed mortgage rate has remained just below 7% for most of the year. The Federal Reserve, which cut rates three times in 2024, most recently in December, has kept its benchmark interest rate in the 4.25%–4.50% range, following three rate cuts in 2024, the last in December. The Fed is expected to maintain this range after its upcoming policy meeting.
Recent government data showed single-family housing starts fell to an 11-month low in June. Permits for future construction also declined, reaching the lowest level in more than two years. Economists indicated that residential investment, which includes homebuilding and home sales through commissions, likely continued to weigh on gross domestic product in the second quarter.
Sales activity varied across regions. The South recorded a 5.1% increase, while the Midwest saw a 6.3% gain. Sales dropped 27.6% in the Northeast and 8.4% in the West.
The inventory of new homes rose from 505,000 units in May to 511,000 in June. Based on the current pace, it would take 9.8 months to clear the inventory, up from 9.7 months in the previous month.
The number of unsold homes rose alongside a year-over-year price drop. The median price for new houses fell 2.9% to $401,800 in June.