According to a report released last week from the US Commerce Department, sales of new homes jumped again in July, rising 13.9% as the housing market continues to gain traction following a spring downturn caused by pandemic-related lockdowns. The department reported that July’s gain propelled sales of new homes to a seasonally-adjusted annual rate of 901,000, which is a far higher number than analysts had expected.

The Commerce Department also reported that construction of new U.S. homes surged 22.6% in July as homebuilders bounced back from a lull induced by the coronavirus pandemic. New homes were started an annual pace of nearly 1.5 million in July, the highest since February. They’ve now risen three consecutive months after plunging in the spring. Last month’s pace of construction was 23.4% above that of July last year.

Regionally, construction of new homes fell only in the Northeast, which saw a 23.1% decline. The Midwest saw a whopping 58.8% increase, followed by the South’s 13% jump and an increase of 7.8% in the West.

Sales are being fueled by ultra-low mortgage rates, which earlier this month dropped below 3% for a 30-year-fixed rate mortgage for the first time in nearly 50 years. Freddie Mac said last week the average rate on a 30-year fixed rate mortgage is now 2.99% it was 3.55%.

Nationally, the median price of a new home sold in July increased to $330,600. While new construction in Denver is costlier than the national average, there are still great deals to be found if you know where to look. Contact Metrowest today and let’s talk about your options!