Sales of new U.S. homes exceeded expectations in July, with a 652,000 annualized pace, higher than the expected 630,000. The median new-home price dropped almost 6% year-over-year to $403,800, the lowest since 2021. Builders are offering incentives at the highest rate since the pandemic, with 66% providing subsidies or discounts. DR Horton (DHI) is cutting mortgage rates to as low as 3.99% through subsidies to boost demand. Mortgage rates are at their lowest since April, supporting buyer interest despite affordability challenges. Housing supply in July was at 9.2 months, the highest since 2009 for completed homes.

Read more at Quiver Quantitative: U.S. New Home Sales Beat Forecasts in July as Prices Fall, Incentives Rise