US new home sales fell more than expected in October as elevated mortgage rates exceeding 7% during the month curbed demand.
Sales of new, single-family homes fell 5.6% month-over-month to 679,000 in October, below the 723,000 expected by economists, new data from the US Census Bureau and the Department of Housing Urban Development shows.
The median sales price for homes sold in October was $409,300 and the average sale price was $487,000.
New home sales rose 17.7% over the same month in 2022 when an estimated 577,000 new homes were sold.
New home sales have benefitted during 2023 as existing homeowners with mortgages ranging between 3% and 4% are reluctant to list their properties.
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