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Latest News

July 26—U.S. new home sales rebounded sharply in June after plunging in May on the heels of the end of federal tax credits for home buyers.

June sales rose 23.6% above the May rate, on a seasonally adjusted basis, according to the latest data from the U.S. Census Bureau. Sales fell by 36.7% in May.

Sales in June remained 16.7% below those of a year earlier.

The rebound in June sales suggest that the worst of the fallout from the end of tax credits is past, analysts said. Record low mortgage rates are a plus for the market, however foreclosures continue to swell the available inventory.

At the end of June, inventory represented a supply of 7.6 months, the Census Bureau said. The supply was 9.6 months at the end of May.

All in all, June sales suggest the market is “not in free fall,” said one financial news website, but sales are expected to remain slow at least for the remainder of the year.

Read the full Census Bureau news release.