US New Home Sales Rose in September and October: Inventory Remains High Even as Lower Rates and Incentives Drive Sales

New Home Sales Supported by Lower Mortgage Rates

Recent declines in mortgage rates seem to be giving a boost to new home sales. While October's annualized sales rate held steady at 737,000 units, strong gains in August and September have pushed activity close to its highest point since May 2023.

The majority of these recent increases have come from the South, where a surge in post-pandemic construction has resulted in a larger supply of new homes. The Midwest also saw its second-highest sales rate of the year in October. However, this upward trend was not consistent across all regions, as some areas experienced little to no change in new home sales during the month.