New US Home Sales Dropped 8.9% in October

Sales of new U.S. single-family homes tumbled to a more than 2-1/2-year low in October amid sharp declines in all four regions, further evidence that higher mortgage rates were hurting the housing market.

The Commerce Department said on Wednesday new home sales dropped 8.9 percent to a seasonally adjusted annual rate of 544,000 units last month. That was the lowest level since March 2016. The percent drop was the biggest since December 2017.

September’s sales pace was revised higher to 597,000 units from the previously reported 553,000 units. New home sales have dropped in four of the last six months.

Economists polled by Reuters had forecast new home sales, which account for about 9.4 percent of housing market sales, rising 3.7 percent to a pace of 575,000 units in October.

New home sales are drawn from permits and tend to be volatile on a month-to-month basis. They decreased 12.0 percent from a year ago.

via Reuters

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