US new home sales fall marginally in October

WASHINGTON, Jan 13 (Reuters) - Sales of caller U.S. single-family homes fell somewhat successful October aft expanding for 2 consecutive months, though declining prices amid still-elevated inventory could ​support the caller lodging marketplace this year.

New location income slipped 0.1% to a seasonally ‌adjusted annualized complaint of 737,000 units, the Commerce Department's Census Bureau said connected Tuesday. Sales accrued to a complaint ‌of 738,000 units successful September from 711,000 successful August. The information was delayed by the 43-day shutdown of the government.

New location income relationship for a tiny stock of U.S. location income and thin to beryllium volatile connected a month-to-month basis.

They are counted astatine the signing of a contract. New location income ⁠jumped 18.7% connected a year-over-year ‌basis successful October. Though owe rates fell successful 2025, immoderate of the stimulus from little borrowing costs was offset by jitters implicit the labour market.

Mortgage ‍rates stay considerably higher than they were 3 years ago. President Donald Trump past week ordered the Federal Housing Finance Agency - which oversees owe concern giants Fannie Mae and Freddie Mac - to acquisition $200 cardinal of bonds ​issued by the 2 companies successful a bid to bring down owe rates.

Mortgage rates way ‌the benchmark 10-year Treasury yield, which pushed higher connected Monday pursuing quality that the Trump medication had opened a transgression probe of Federal Reserve Chair Jerome Powell implicit a gathering renovation project. Analysts saw a humble interaction from the owe purchases.

"With semipermanent Treasury yields inactive supra 4% and facing persistent upward unit from ample fiscal deficits and above-target inflation, owe rates are apt ⁠to enactment elevated," said Mike Sanders, caput of fixed ​income astatine Madison Investments.

"Any effort by the Fed to unit done ​rate cuts could trigger further selling astatine the agelong extremity of the curve, yet offsetting the interaction of the $200 cardinal acquisition program."

The median caller location terms ‍dropped 8.0% to $392,300 successful ⁠October from a twelvemonth earlier. Weak request and still-high inventory are slowing location terms inflation.

New lodging inventory was unchanged astatine 488,000 units successful October. Supply surged to 504,000 successful ⁠March and May, which was the highest level since precocious 2007. At October's income pace, it would instrumentality 7.9 ‌months to wide the proviso of caller houses connected the market, unchanged from ‌September.

(Reporting by Lucia Mutikani; Editing by Andrea Ricci )