New home sales dropped less than expected ahead of Fed rate cut

Sales of new homes across the U.S. in August 2024 dropped less than expected. The U.S. Department of Commerce released a new report on Wednesday, Sept. 25 that detailed home sales in August, just before the Federal Reserve cut interest rates since 2020.

Currently, mortgage rates are the lowest Americans have seen in nearly two years, and the inventory of previously-owned homes remains small. Financial experts expect that more homebuyers will enter the market in the fall of 2024 thanks to lowering interest rates.