Sales of new US homes at highest level in over a year

WASHINGTON, Oct 25 (AFP): Sales of new homes in the United States last month exceeded analyst expectations Thursday, logging the fastest pace in more than a year on the back of cooler mortgage rates.

Sales of new homes stood at an annual rate of 738,000, seasonally adjusted, 4.1 percent up from the revised August figure of 709,000, said the Commerce Department.

The rate was higher than a consensus of analysts expected.

The property market, which is sensitive to interest rate changes, has taken a hit since the Federal Reserve rapidly hiked rates to ease demand and battle inflation.

But sales of previously owned homes have been more impacted as existing homeowners remained reluctant to sell their properties -- pushing more buyers into the new homes market and giving it a boost.

The September sales rate was also 6.3 percent above the figure from September 2023, official data showed.