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New Home Sales Surge 20.5% Amid Price Cuts

9/26/2025

35 3 Full Breakdown

Summary

Home Sales Surge

New U.S. new-home sales rose 20.5% in August 2025 to 800,000 annually; the Northeast up 72%, the South at 530,000.
The gain reflects lower mortgage rates and incentives, with 39% of builders cutting prices in September.
The median price reached $413,500, up 4.7% from July despite affordability pressures.
Upcoming National Association of Realtors (NAR) data will inform existing-home trends.

Summary

Fannie Mae Forecasts Recovery

Fannie Mae predicts a United States housing market recovery, with mortgage rates at 5.9% by end of 2026.
Home sales are forecast to reach 4.72 million in 2025 and 5.16 million in 2026.
30-year fixed mortgage rate is 6.26%, down from a 2023 peak of 7.7%.
The Federal Reserve (Fed) cut rates, but rates fluctuated; economists anticipate further cuts.

History

Historical Context

The U.S. housing market faced a severe downturn during the 2008 financial crisis, with home prices plummeting by 30%. In response, the Federal Reserve initiated quantitative easing and lowered interest rates to stimulate recovery. As of 2026, new-home sales are rising, reflecting these strategies, while mortgage rates have decreased to 5.9%, highlighting ongoing challenges in housing affordability.

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Home Sales Surge

New U.S. new-home sales rose 20.5% in August 2025 to 800,000 annually; the Northeast up 72%, the South at 530,000.
The gain reflects lower mortgage rates and incentives, with 39% of builders cutting prices in September.
The median price reached $413,500, up 4.7% from July despite affordability pressures.
Upcoming National Association of Realtors (NAR) data will inform existing-home trends.

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