Economics

US New-Home Sales Decline as Rising Mortgage Rates Sap Demand

  • Purchases of new single-family homes fell 10.9% last month
  • Mortgage rates rose to 7.16% last week, highest since 2001
Zillow Economist Says US Home Equity to Be Preserved Amid Sales Slowdown
Lock
This article is for subscribers only.

Sales of new US homes fell in September, resuming a downtrend as decades-high mortgage rates push would-be buyers out of the market.

Purchases of new single-family homes decreased 10.9% to a 603,000 annualized pace following an unexpected gain in August, government data showed Wednesday. The median estimate in a Bloomberg survey of economists called for a 580,000 rate.