New home sales improved in August, but the monthly gain masked continued weakness in the broader new-home market. Elevated mortgage rates and ongoing affordability challenges continue to constrain demand, with new home sales remaining below last year’s pace and year-to-date sales lower than in 2025. Despite the monthly increase, housing affordability remains a significant challenge for prospective buyers. The average 30-year fixed mortgage rate reached 6.95% in mid-September. …Sales of newly built single-family homes increased 6.4% in August to a seasonally adjusted annual rate of 684,000, following an upwardly revised July estimate, according to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. This represented a 2.0% decline from a year earlier. …New single-family home inventory in August was unchanged from July at 483,000 units. At the current sales pace, the months’ supply of new homes stood at an elevated 8.5 months. A 5-6 month inventory level is a balanced market.