According to the Mortgage Bankers Association (MBA), interest rates are now 1.25% lower than this time last year, dropping from 6.15% to 6.13%.

While new home sales fell 4.7%, they still surpassed estimates of 700,000, though only 105,000 homes were completed. What’s more interesting is the pace of sales compared to the number of available or completed homes.

Last month, 716,000 contracts were signed, equating to 7.8 months of inventory, but only 1.7 months of that inventory represents completed homes.

Despite these dynamics, housing demand remains strong, especially as interest rates continue to decline.