New home sales in the United States increased in June, marking the first rise in three months and signaling a potential stabilization in the housing market.

The data suggests that buyer demand is beginning to recover from a recent pullback triggered by surging borrowing costs.

The rebound was driven primarily by the South, the nation's largest housing market, where sales jumped 9.9% to reach 412,000 units.

This regional strength helped offset softer activity in other parts of the country, providing a counter-narrative to the broader affordability crisis that has weighed on the sector.

The improvement comes as US mortgage rates climbed to their highest level since August 2025 last week, intensifying pressure on prospective buyers.

Despite the elevated cost of capital, the June figures indicate that pent-up demand and regional price disparities are sustaining transaction volumes.