New home sales pick up in June, Census data shows

New home sales in the U.S. picked up in June after a two-month decline, though higher borrowing costs and prices limited the rebound. Sales of single-family homes rose 1.6% to a seasonally adjusted annualized rate of 628,000 units, according to the Commerce Department’s Census Bureau on July 24. The median new house price fell to $398,300, down 2.7% from a year earlier, and sales were down 5.6% year over year. Economists surveyed by Reuters had expected 610,000 units. Mortgage rates have become a key headwind, with the 30-year fixed rate rising to 6.58% this week, the highest since last August. The Fed meets next week, with market pricing pointing to higher chances of hikes in September.