US New Home Sales Plummet Amid High Mortgage Rates

Sales of new U.S. single-family homes fell to their lowest level in nearly two years in October, declining by 17.3% to an annual rate of 610,000 units. This decrease is attributed to rising mortgage rates, with the average rate on a 30-year fixed-rate mortgage increasing to 6.72%, and disruptions caused by hurricanes in the South, which saw a significant drop in sales by 27.7%. While sales plummeted in the South and West, they saw significant increases in the Northeast and modest gains in the Midwest. The median new house price rose by 4.7% compared to the previous year, reaching $437,300. Inventory levels rose to 481,000 units, marking the highest since early 2008, with a supply estimate of 9.5 months at the current sales pace.