New home sales rebound as builders chase buyers' budgets

New home sales in the US rose in August, driven by price cuts, incentives, and smaller floor plans, marking the fastest pace in eight months but still 2% below last year. Sales surged in the Midwest and South but declined in the Northeast and West. The median new-home price was $393,700, with over half priced below $400,000. New homes have been cheaper than existing ones for six months. Inventory remained high, and builder sentiment hit a one-year low amid rising financing costs.