New home sales hit lowest level since January

• JPMorgan Chase plans to deploy $750 billion into affordable housing through 2035, aiming to finance 1 million homes, with other large banks also committing billions.
• National Association of Home Builders President Jim Tobin notes strong long-term demand from millennials, but current high mortgage rates and 'headline risk' are keeping buyers on the sidelines.
• July new home sales tumbled 10.5%, the lowest since January, with 30-year mortgage rates averaging 6.66%. Builders are offering incentives like price cuts and mortgage rate buy-downs.
• Regulatory burdens add approximately $130,000 to the cost of a single-family home, and deregulation efforts are seen as crucial to increasing supply and lowering prices.

The discussion highlights significant investments by major banks into the U.S. housing market, particularly affordable housing, despite current market softness. While new home sales have declined due to high mortgage rates, underlying demand from millennials and ongoing deregulation efforts are viewed as positive long-term drivers for the sector.