US new-home sales jumped 6.2 per cent in October
WASHINGTON — Americans bought new homes in October at the fastest pace in a decade — a 6.2 per cent monthly increase that reflects both the underlying strength of the economy and the worsening shortage of existing homes for sale.
The Commerce Department said Monday that new-home sales last month rose to a seasonally adjusted annual rate of 685,000. That marks the third straight monthly gain and the best sales clip since October 2007. Much of the sales growth came from the Northeast and Midwest, with the South and West posting smaller increases.
Many buyers are turning to new construction because there is a shrinking supply of existing homes for sale. But new construction has been unable to keep up with demand. Potential buyers are searching for homes amid a healthy job market with a 4.1 per cent unemployment rate and attractive 30-year mortgage rates that are averaging less than 4 per cent.
Still, the lack of properties on the market has fueled higher prices, creating affordability pressures.