Sales of new single-family homes in the US fell 7.3% month-over-month in May 2026 to a seasonally adjusted annualized rate of 580,000 units, the US Census Bureau and Housing and Urban Development reported on June 24 [1, 2, 3, 4]. This represented a 6.8% decline compared to the same month last year, when sales were at 622,000 units [1, 2, 3, 4].
The median sales price of new homes held steady at approximately $424,900 in May 2026 compared with a year ago [1, 2, 4, 5]. However, the average sales price increased by 7.8% from April, reaching $540,600, indicating that more expensive homes are pulling the average price upward [4]. The supply of new homes for sale at May's end rose to 496,000 units, equivalent to about 10.3 months of inventory at current sales rates [4].
Mortgage rates have climbed alongside geopolitical tensions following a US-led conflict with Iran that began in late February 2026. Since then, rates for a 30-year fixed mortgage have risen about 50 basis points, averaging 6.47% in late June [1, 2, 3]. Higher borrowing costs and rising home prices are cited as factors behind the sales decline [1, 2, 3, 5].
Christopher Rupkey, chief economist at FWDBONDS, said, "There was not a lot in there to help traditional single-family home buyers. There are not enough homes on the market and those that are listed are at mostly unaffordable levels. The housing price bubble is still inflating, a slower rate of advance than it had been, but home prices overall are still moving higher except for some regional markets that had seen prices run-up too high" [3].
On June 23, the US Congress passed a bipartisan bill targeting housing affordability by limiting Wall Street firms' ownership of single-family homes and accelerating environmental reviews. However, President Donald Trump delayed signing the bill due to unrelated voting legislation issues [3].
The next major update on new home sales is expected when June data is released next month.
