NEW YORK - New home sales in the United States bounced upward in July, as a lack of existing real estate pushes buyers into the market for new builds, government data showed Wednesday.
A lack of inventory for existing homes has boosted demand for new properties despite high mortgage rates, lifting the sector's share of total home sales, according to analysts.
Last month, sales of new single-family houses rose to an annual rate of 714,000, the Commerce Department said.
The figure, which was higher than analysts expected, came in above June's revised 684,000 rate.
Meanwhile, the median sales price of new houses sold last month rose to $436,700 -- the highest since March.
On Tuesday, a separate report showed that sales of existing homes in the United States continued slowing in July as interest rates climb and current home owners find themselves reluctant to put their properties on the market.
The popular 30-year fixed-rate mortgage averaged nearly 7.1 percent as of August 17, the highest level in over 20 years, according to data from home loan finance company Freddie Mac.
With would-be sellers having locked in lower rates previously, analysts noted that many people cannot move without triggering a big jump in their monthly payments.