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New home sales in the US fall with rising interest rates

New home sales in the USA declined to 603 thousand with a decrease of 10.9 percent on a monthly basis in September due to the increasing mortgage (housing loan) interest rates and housing prices.

The US Department of Commerce announced new home sales statistics for September. Accordingly, new house sales in the country, seasonally adjusted, decreased by 10.9 percent compared to the previous month and fell to 603 thousand in September.

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Market expectations were for new home sales to decline by 13.9 percent in this period to 585,000.

New home sales, which decreased less than expected, increased by 24.7 percent in August to 677 thousand.

New house sales decreased by 17.6 percent in September compared to the same month of the previous year.

The median sales price of new homes that went on sale in the USA last month increased by approximately 13.9% compared to the previous year and reached 470 thousand 600 dollars.

 

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Analysts stated that the demand for housing continues to decrease with the effect of rising mortgage interest rates and rising housing prices.

According to data released by the Mortgage Banks Association (MBA), the average interest rate for 30-year mortgages in the USA reached 7.16 percent, the highest level since 2001.

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