Posted 11/27/2023, 3:25:29 PM
U.S. New Home Sales Drop More Than Expected in October as Rising Mortgage Rates Reduce Affordability
- New U.S. single-family home sales fell more than expected in October, down 5.6% to an annual rate of 679,000 units
- Drop likely due to higher mortgage rates reducing affordability for buyers
- Housing demand remains supported by tight supply of existing homes on the market
- 30-year fixed mortgage rates jumped to over 7% in late October, highest since 2000
- Fed interest rate hikes not slowing housing market as much as expected due to buyers locking in low rates during pandemic