Sales of newly built, single-family homes were at a seasonally adjusted annual rate of 654,000 units, a 12.4 percent increase from June and the highest rate since October 2007, according to the National Association of Home Builders.
"July's positive report shows there is a need for new single-family homes, buoyed by increased household formation, job gains and attractive mortgage rates," said NAHB Chief Economist Robert Dietz in a statement. "This uptick in demand should translate into increased housing production throughout 2016 and into next year."
Regionally, new-home sales increased by 40 percent in the Northeast, 18.1 percent in the South and 1.2 percent in the Midwest. New-home sales in the West were unchanged.
The median price of new homes sold was $294,600.
