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New home sales unexpectedly climb in October despite steep mortgage rates
Is the US headed toward a housing crash?
CapitalistPig hedge fund manager Jonathan Hoenig discusses housing prices tumbling and high mortgages rates as the Fed considers raising interest rates again.
Sales of new U.S. homes unexpectedly jumped in October even as high home prices and mortgage rates not seen in over a decade have rapidly eroded affordability.
New single-family home purchases rose 7.5% to a seasonally adjusted annual rate of 632,000 units, the Commerce Department reported on Wednesday. Economists surveyed by Refinitiv expected new home sales – which account for a small percentage of total sales – to fall 5.5% last month.
On an annual basis, new home sales are still down 5.8%.
The median new house price climbed nearly 15.4% in October from the year-ago period to $493,000. That is also up more than 8% from September. There were about 470,000 new homes on the market at the end of October, the report shows, a slight increase from the previous month.
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