New home sales surged to a 13½-year high in July, as record low mortgage rates, pent-up demand from the spring and a shortage of existing homes for sale all boosted activity. Tight markets and rising demand have also given house price growth a small boost, with the FHFA reporting that the dip in prices in May was more than reversed in June. But with unemployment to remain elevated, and inventory dropping back, new home sales are set to edge down over the remainder of the year toward 800,000 annualised.
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