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New home sales soar to 10-year high

Posted by The Aramco Group on Thu, Oct 26, 2017 @ 14:10 PM

Sales of new single-family homes in the U.S. surged in September, reaching their highest level in nearly a decade. According to data from the U.S. Department of Commerce, new home sales climbed 18.9 percent to a seasonally adjusted annual rate of 667,000 in September from the previous month. This marks the highest level recorded since October 2007 as well as the largest single-month increase since 1992.

Last month's increase comes as a surprise to economists who, when polled by Reuters, had forecast new home sales to drop 0.9 percent. The housing market was expected to be greatly hampered by the late summer hurricanes in Texas and Florida which stalled homebuilding.

New home sales account for 11 percent of overall sales. More than two-thirds of the new homes sold in September were under construction or yet to be started at all.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates are near 3.25 percent.

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