New home sales in the US fell 2.5% in June, but were still up 23.8% year-on-year. The median new house price dropped 4.0% year-on-year. The housing market is showing signs of stabilization, with an acute shortage of previously owned homes underpining demand. Despite rising mortgage rates, the Fed raised its policy rate by 25 basis points to a 5.25% to 5.50% range. This could delay a recovery in the housing market, but economists argue that there is still a huge pipeline of homes to be completed.
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