US New Home Sales Surge to 1.5-Year High in September

A decline in mortgage rates and builder incentives drive new home sales, contrasting with a slump in existing home sales.

New home sales in the US rose by 4.1% in September, reaching an annual rate of 738,000 units, the highest since May 2023.
The increase in new home sales is attributed to declining mortgage rates and incentives offered by builders, such as price cuts and mortgage-rate buydowns.
While new home sales have climbed, existing home sales have fallen to their lowest level in 14 years due to higher interest rates and prices.
The median sales price for new homes remained unchanged from a year ago at $426,300, with inventory levels reaching near 2008 highs.
Despite recent gains, the future of new home sales may be challenged by rising mortgage rates and ongoing affordability issues.