New home sales saw a modest 1.6% month-over-month increase, the first rise in three months, though this followed significant declines in April and May. May's previous decline was revised to a smaller 4.3% drop. Despite this uptick, annual new home sales remain down 5.6% year-over-year. New home sales have essentially stagnated over the past four years but are performing better than existing and pending home sales. Recent increases in mortgage rates have not spurred new home sales and appear to be rising again. Median new home prices have fallen for the second consecutive month, approaching 2021 lows. Homebuilder confidence continues to decline, lagging behind buyer confidence. Unfortunately, the decrease in home prices is undermined by rising mortgage rates. This situation hinders affordability efforts. Overall, the new home market shows weak performance despite some minor improvements.