Sales of new single-family houses in July are estimated at a 652,000 annual rate, a slight dip from the revised 656,000 reported for June (previously 627,000), but beating the 628,000 expected in the Econoday survey of forecasters.

July's new home sales rate is 0.6 percent slower than June, and 8.2 percent below the July 2024 rate of 710,000.

The median sales price of new houses sold in July was $403,800 compared to $407,200 in June, and $429,000 in July 2024. The average sales price was $487,300.

The inventory of new houses for sale declined from 502,000 at the end of June to 499,000 at the end of July. The months' supply was unchanged at 9.2 months in July at the current sales rate. Inventory was at 7.9 months of supply in July 2024.

The consensus looks for home sales to languish at a shaky 628K annual rate in July after 627K in June.

New home sales measure the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing market trends and, in turn, economic momentum and consumer purchases of furniture and appliances.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as new home sales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio. Each time the construction of a new home begins, it translates to more construction jobs, and income which will be pumped back into the economy. Once the home is sold, it generates revenues for the home builder and the realtor. It brings a myriad of consumption opportunities for the buyer. Refrigerators, washers, dryers and furniture are just a few items new home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, new home sales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the new home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.