The National Association of Home Builders (NAHB) reports that new home sales of single-family units are up 7.9 percent for the month of August, 2013. This figure translates to a seasonally-adjusted rate of 421,000 units in August, which is great news for production and custom builders alike.

These new figures come from the Department of Housing and Urban Development in conjunction with the US Census Bureau. August’s sales increase partially offsets a dip in sales from July, as homebuyers reacted to the new increase in mortgage rates.

Rick Judson, NAHB chairman and North Carolina homebuilder, further explained the chain of events. “Consumers are adjusting to the reality of today’s higher rates following a period of record-setting lows, and today’s sales report provides evidence of that.”

Judson continued, “We expect to see more buyers coming back to the market as the psychological effects of the rate gains continue to wear off, particularly since, even after the recent spike, mortgage rates remain exceptionally favorable on a historic basis.”

In August, NAHB reported that new home sales plummeted by 13.4% for the month of July, due to the recently-announced increase in mortgage rates. While rates continue to remain historically low, homebuyers are still getting comfortable with the new rate announcement in July. August’s nearly 8% increase in sales reflects a growing homebuyer confidence.

“Sales of new homes bounced partway back in August from an unusual low in July,” said NAHB Chief Economist David Crowe. Crowe furthered, “That said, we are only about halfway back to what would be considered a sustainable level of activity in a normal economy, and the ongoing housing recovery continues to be slowed by consumers’ concerns about interest rates, as well as weak job growth and uncertainty about what’s happening in Washington.”

The Midwest posted a sales increase of 19.6 percent, the South gained at 15.3 percent, and the Northeast posted gains of 8.8 percent. The West, as an exception to the rule, posted a 14.6 percent decline.

Custom builders should breathe a sigh of relief when it comes to the news of August’s sales increase. The overall new single-family home supply decreased by 5.0% in August, and builders can safely continue to construct new homes without worrying whether they’ll sell. NAHB reports that many metro markets are improving across the country as well.