US new home sales beat June forecast but remain 5.6% below 2025

New home sales in the United States rose 1.6 percent in June and exceeded analysts’ expectations, but remained below their level a year earlier as borrowing costs and inflation continued to pressure households.

The Commerce Department said sales increased from May to a seasonally adjusted annual rate of 628,000.

Analysts had expected a rate of 606,000, according to estimates published by MarketWatch. Despite the monthly increase, the June sales rate was 5.6 percent lower than in June 2025.

Matthew Martin, an economist at Oxford Economics, said rising mortgage rates and the effect of higher inflation on household incomes would keep sales uneven in the near term.

He said these pressures would delay any sustained improvement and that there was little room for stronger sales in the coming months.

Martin said mortgage rates had risen to 6.58 percent as of July 23, their highest level since August 2025.

The source also cited continued inflation pressure linked to elevated oil prices during the war in the Middle East.

It said renewed fighting between the United States and Iran had unsettled global energy markets. Oil prices rose after US-Israel strikes targeting Iran since late February and Tehran’s retaliation, which nearly closed the Strait of Hormuz, a major energy transit route.

Higher energy costs have added to pressure on US consumers ahead of key midterm elections.