US New Home Sales Fall to 676,000 Units in September

New single-family home sales in the United States fell 0.6% in September to a seasonally adjusted annualized rate of 676,000 units. Data released Tuesday by the United States Census Bureau shows that while the monthly decline was smaller than economists predicted, sales dropped 5.3% compared to the previous year.

The median new house price decreased 3.9% year-over-year to $400,400. Regional results were mixed, with sales surging in the West and Northeast while plummeting in the South and Midwest.

Industry analysts attribute the downturn to an affordability crisis driven by high mortgage rates, which averaged 7.32% last week according to Freddie Mac. These rates followed military actions by the U.S. and Israel against Iran in February. The trend has led to a slump in housing starts and permits, with the National Association of Home Builders reporting that builder expectations have hit their lowest level since 2012, excluding the pandemic period.