US new home sales fall marginally in October

Core Insights - Sales of new U.S. single-family homes fell slightly by 0.1% in October, reaching a seasonally adjusted annualized rate of 737,000 units, after two months of increases [2] - Year-over-year, new home sales increased by 18.7% in October, indicating a strong annual performance despite the slight monthly decline [3] Sales and Inventory - The new home sales rate in September was revised to 738,000 units from 711,000 in August, reflecting volatility in monthly sales data [2] - New housing inventory remained unchanged at 488,000 units in October, with a supply level that would take 7.9 months to clear at the current sales pace [8] Pricing Trends - The median price of new houses dropped by 8.0% to $392,300 in October compared to the previous year, driven by weak demand and high inventory levels [6] - Elevated mortgage rates, which are significantly higher than three years ago, continue to exert pressure on housing prices [4][6] Mortgage Rates and Economic Factors - Mortgage rates are influenced by the benchmark 10-year Treasury yield, which has been under upward pressure due to fiscal deficits and inflation concerns [5][6] - The Trump administration's recent directive for the Federal Housing Finance Agency to purchase $200 billion in bonds aims to lower mortgage rates, although analysts predict limited impact [4][5]