Sales of new single-family homes in the United States plunged by 13.7% from the previous month to a seasonally adjusted annualized rate of 623,000 units in May of 2025, erasing the downwardly revised 9.6% increase in April. The result was sharply below expectations that sales would be just under 700,000 units to reflect the sharpest decline since June of 2022, as higher mortgage rates and uncertain economic conditions drove households to wait before buying homes. New home sales sank in the South (-21% to 349,000), the West (-5.4% to 159,000), and the Midwest (-7.1% to 78,000. The median home price rose by 1.4% to 507,000, representing 9.8 months of supply at the latest sales pace.