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Delayed Report Shows U.S. New-Home Sales Holding Firm as Prices Slide

Lower mortgage rates paired with builder discounts are drawing buyers back despite margin pressure.

Overview

  • October new single-family sales registered a 737,000 annualized pace, essentially flat from September and up 18.7% from a year earlier, marking the strongest two-month stretch since early 2022.
  • The median new-home price fell 8.0% year over year to $392,300, and more than half of October purchases were under $400,000 for the first time in 2025.
  • Inventory held at 488,000 units, equal to 7.9 months of supply, unchanged month over month and still elevated compared with earlier years.
  • Regional results were uneven, with the South leading at a 513,000 pace and posting strong annual gains while the West and Northeast saw large declines.
  • Mortgage rates hovering near the low-6% range and widespread builder incentives supported demand, while President Trump’s $200 billion Fannie-Freddie MBS purchases were assessed as having only a modest effect and builder margins remained squeezed.