New home sales in the U.S. dropped last month as mortgage rates have soared.

According to the U.S. Census Bureau, new home sales fell 5.6% in October, more than expected.

“The median sales price of new houses sold in October 2023 was $409,300,” the Bureau said in its announcement. “The average sales price was $487,000.”

According to the Federal Reserve Bank of St. Louis, the average 30-year fixed mortgage rate in the U.S. in October rose to nearly 8% before dipping closer to 7% in November. About this time in 2021, the average rate was around 3%.

That interest rate spike has been fueled in large part by the U.S. Federal Reserve, which has hiked the federal funds rate about a dozen times since March of last year in an effort to combat elevated inflation.

To continue reading the rest of the article, please click on the source link below:

https://kqkinews.com/new-home-sales-in-october-drop-more-than-expected/