New Home Sales Surge in September as Buyers Rush Before Mortgage Rates Increase Further

New home sales jumped 12.3% in September as buyers rushed to purchase before mortgage rates rose further.

Sales exceeded expectations and were up 33.9% from last year, but may slow as rates keep climbing.

Low resale inventory has fueled demand for new construction, making up a third of listings.

Builders offered discounts and rate buydowns to attract buyers, with prices and values falling in September.

Demand has been choppier in October as seasonality returns, so sales may soon cool with higher rates and cooler weather.