Mortgage Rates Move Back Above 6.5%

New home sales took a notable step back in January, reversing much of the prior month’s strength and highlighting the volatility that often defines this data series. The Census Bureau reported a seasonally adjusted annual rate of 587,000 , down sharply from December’s 712,000 and 11.3% lower than January 2025. For-sale inventory moved slightly higher to 476,000 , up 0.4% from December but still 4.0% below year-ago levels. At the current sales pace, months’ supply jumped to 9.7 months , up from 8.0 months in December and 9.0 months one year ago. The increase reflects the combination of softer demand and relatively steady inventory levels. Prices declined on both a monthly and annual basis. The median sales price fell to $400,500 (-4.5% MoM; -6.8% YoY), while the average