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New Home Sales Slip More Than Expected in October
Sales of new U.S. single-family homes fell more than expected in October as higher mortgage rates discouraged buyers even as builders cut prices, Reuters reported. New home sales dropped 5.6% to a seasonally adjusted annual rate of 679,000 units, the U.S. Commerce Department’s Census Bureau said. September’s sales pace was revised lower to 719,000 units from 759,000 units.
The sales decline reported by the Commerce Department on Monday was in line with the National Association of Realtors’ report that existing-home sales declined in October and a decline in homebuilder sentiment. However, mortgage rates have retreated from two-decade highs and are at levels last seen in late September, which could pave the way for a rebound in sales.
“The market for new homes remains very solid by any historical standard and continues to be boosted by extremely low existing home inventory,” Daniel Vielhaber, an economist at Nationwide in Ohio, told Reuters.
- ◦Economy
