US New Home Sales See Fastest Pace Since February Despite High Mortgage Rates

New home sales in the US jumped 12.3% in September compared to August, reaching the fastest pace since February 2022.

Sales exceeded analyst expectations despite high mortgage rates over 7% making financing costlier.

New construction has appealed to frustrated buyers due to low supply of existing homes. But affordability issues remain.

Sales increased most in the South due to availability of land, population growth, and lower cost of living.

Inventory is better for new homes, with 6.9 months supply versus 3.4 months for existing homes.