New Home Sales
Chuck Burton/AP
By Lucia Mutikani

WASHINGTON -- Sales of new U.S. single-family homes recorded their biggest increase in nearly 33½ years in October, suggesting the housing market recovery remains intact despite higher mortgage rates.

The Commerce Department said Wednesday sales jumped 25.4 percent to a seasonally adjusted annual rate of 444,000 units. It also said new home sales fell 6.6 percent in September.

The release of both the September and October reports was delayed because of a 16-day partial shutdown of the government last month.

Economists polled by Reuters had expected new home sales to set a 428,000-unit pace last month.
Compared with October last year, new home sales were up 21.6 percent.

The strong rise in new home sales, which are measured when contracts are signed, suggested higher mortgage rate had not derailed the housing market recovery.

Higher mortgage rates have slowed the pace of home sales, but demand for accommodation as household formation continues to recover from multidecade lows is keeping demand supported.

Home resales fell in October for a second straight month and confidence among single-family home builders has ebbed somewhat since nearing an eight-year high in August.

Strong new home sales in October saw the stock of houses on the market falling 3.7 percent after touching their highest level in nearly three years in September. Despite the tight supply of properties, the median price of a new home slipped 0.6 percent from a year-ago.

At October's sales pace it would take 4.9 months to clear the houses on the market, down from 6.4 months in September. A supply of 6.0 months is normally considered as a healthy balance between supply and demand.


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tonlo60

to all the actoks that go on to shiell

December 06 2013 at 12:26 AM Report abuse rate up rate down Reply
createidea

WASHINGTON -- Sales of new U.S. single-family homes recorded their biggest increase in nearly 33½ years in October, suggesting the housing market recovery remains intact despite higher mortgage rates.

LOL !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

December 04 2013 at 2:59 PM Report abuse +1 rate up rate down Reply
dweeeb.buster

Boy that government SLOWdown sure delivered a crushing blow to the economy, huh.

LOL

December 04 2013 at 2:42 PM Report abuse +1 rate up rate down Reply
rgkarasiewicz

I suppose what they forgot to mention was that the vast majority of those sales were for condos.

December 04 2013 at 12:46 PM Report abuse rate up rate down Reply
jdykbpl45

Based on the Obama gang\'s fudged statistics.

December 04 2013 at 10:52 AM Report abuse rate up rate down Reply
k.musicwmusicwmunisamunisa

hy

December 04 2013 at 10:16 AM Report abuse rate up rate down Reply