Sales of newly constructed homes in the U.S. fell a more than expected 5.6% in October. Prices dropped and inventories rose, indicating softening of the residential real estate market.
Sales of new single-family houses decreased to an annual rate of 679,000 from a revised 719,000 in September, the Census Bureau and the Department of Housing and Urban Development said in a statement Monday.
Economists surveyed by The Wall Street Journal expected sales of 725,000 last month. From a year earlier, sales rose 18%.
The data for September was revised down from an initial reading for 759,000.
The average price of new homes fell 5.5% from August to $487,000, according to the report. The seasonally‐adjusted estimate of new houses for sale was at 439,000, which represents a supply of 7.8 months.
Another report released on Nov. 21 showed that sales of previously owned homes in the U.S. fell in October to the slowest pace since August 2010 as mortgage rates remain high and prices keep rising. Existing home sales dropped 4.1% in October from September to an adjusted annual rate of 3.79 million. From a year earlier, the drop was 15%.
The average 30-year fixed rate dropped to 7.41% in the week ended Nov. 17 from 7.61% a week earlier, the Mortgage Bankers Association said on Nov. 22. The rate was close to 8% in mid-October. Applications for mortgages increased 3%.
