Key facts
- New home sales fell 0.6% to 676,000 units in September.
- Median new house price dropped 3.9% year-over-year to $400,400.
- Supply of new houses fell to 476,000 units, enough for 8.4 months of sales.
Sales of new US single-family homes fell 0.6% in September to a seasonally adjusted annualized rate of 676,000 units, according to the Commerce Department's Census Bureau. This partially reversed August's upward revision and fell short of economists' forecasts. Higher mortgage rates, averaging 7.32% last week, are dampening demand and contributing to an affordability crisis. The median new house price decreased 3.9% year-over-year to $400,400, with most homes sold priced below $499,999. The supply of new houses decreased to 476,000 units, representing 8.4 months of inventory at the current sales pace.