US New Home Sales recover amid summer soft patch - Wells Fargo

Today’s data showed that new home sales in August rose 3.5% to 629K. Analysts at Wells Fargo, point out that while August marks an improvement, sales over the past three months were also revised lower. 

Key Quotes: 

“New home sales rose 3.5% during August, however the gain comes with a net revision of 40,000 fewer sales over the prior three months. While sales are up 6.9% year-to-date, higher mortgage rates have slowed home buying this summer.”

“The median  home price rose 1.9% over the past year to $320,000.”

“Solid job and income growth should keep sales trending higher. Deteriorating affordability and continuing worker and lot shortages make an upside breakout this year unlikely.”