New US Home Sales In July Highest In Nearly Fourteen Years

Despite record unemployment, July sales of new homes in the US have hit the highest rate in nearly fourteen years.

Sales jumped the most in the Midwest, soaring 58.8% to 127,000 units.

Home sales shrank in the Northeast by 23.1% to 40,000 units.

The price for homes is higher, too.

According to Markets Insider, median sales price gained 7.2% to $330,600 from the year-ago period.

The summer boom was propelled mainly by record low interest rates and a lack of listings for existing homes.

However, Oxford Economics says the pace is likely unsustainable.

While strong demand and lower mortgage rates are supportive of further growth in sales, the slow recovery and weak labor market pose downside risks.

Oxford Economics