New-Home Sales Fall 5.5% in September for Fourth Straight Decline
WASHINGTON — Sales of new U.S. homes plunged 5.5% in September, the fourth straight monthly drop as the housing market cools while mortgage rates rise.
The Commerce Department said Oct. 24 that newly built homes sold at a seasonally adjusted annual rate of 553,000 last month. The annual rate of home sales has dropped 15.3% since May.
Builders had assumed that a stronger economy would push up sales, yet a greater share of new construction is going unpurchased. There is a 7.1-month supply of new homes on the market, the highest level since March 2011.
Average 30-year mortgage rates have climbed to 4.85%, from 3.88% a year ago, according to mortgage buyer Freddie Mac.
The average sales price has slumped 0.6% from a year ago, to $377,200.
