US New-Home Sales Fall to Five-Month Low Amid Elevated Rates

  • Purchases fell 8.7% in August, largest drop in nearly a year
  • Separate report Tuesday showed prices rose to record in July

The number of homes sold in August and awaiting the start of construction ticked higher.

Photographer: Rebecca Noble/Bloomberg
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US new-home sales fell in August to a five-month low as still-high prices and historically elevated mortgage rates took a toll on the housing market.

Purchases of new single-family homes fell 8.7% to a 675,000 annualized pace following an upward revision to July’s figures, government data showed Tuesday, marking the largest drop in nearly a year. The median estimate in a Bloomberg survey of economists called for a 698,000 pace.