Delayed New-Home Sales Report Beats Expectations

New home sales beat expectations in October, climbing to a 737,000 annualized pace compared to a consensus expectation of 710,000.

The Census Bureau released its calculations of new single-family house sales Tuesday. The report had been delayed by last year’s government shutdown.

First American Senior Economist Sam Williamson noted the figure came in just 1,000 units shy of September’s 738,000 reading, which was also released yesterday. “After downward revisions to August, the September–October period now marks the strongest two month stretch since early 2022, as easing mortgage rates—paired with builder incentives and price flexibility—continued to draw buyers back into the market,” he said.

Williamson noted that if mortgage rates continue to drift modestly lower, “the backdrop for the fast-approaching spring selling season could strengthen further—an encouraging sign of renewed buyer activity in a still-challenging market.”

The latest National Association of Homebuilders survey of builder sentiment points to a cautiously improving outlook. Builders reported an uptick in buyer traffic, though the index is still just 26, indicating interest is returning only gradually. “Still, with mortgage rates hovering near three-year lows, the data suggest rate-sensitive buyers are re-engaging as incremental affordability gains make the purchase calculus workable again,” Williamson added.