Sales of newly built homes rose a much larger-than-expected 20.5% in August compared with July to the highest level since January 2022, according to the U.S. Census. It is also the largest one-month gain since August 2022. Sales were 15.4% higher than August 2024.

This count is based on people out shopping in August and signing deals, when the average rate on the 30-year fixed mortgage was higher than it is today. That rate started August at 6.63%, according to Mortgage News Daily, and didn't really move much during the month.

The sharp decline in rates began in September, when it fell to a three-year low of 6.13% the day before the Federal Reserve cut its lending rate , and then moved higher to where it is now at 6.37%.

Given that rates hadn't fallen yet, it's curious that August s

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