Posted 11/27/2023, 3:20:00 PM
New Home Sales Drop in October as Mortgage Rates Rise
- New home sales fell 5.6% in October to an annualized rate of 679,000 as mortgage rates reached 2023 high
- Sales were below analysts' expectations of 723,000 pace
- New construction homes have been an alternative for buyers amid inventory and affordability issues
- Builders can "buy down" rates to make offerings more attractive than resale market
- If rates drop in 2024, new home sales could pick up due to pent-up buyer demand