New Home Sales, which measure signed contracts on new homes, rose 4.1% from August to September, with the 738,000-unit pace reaching the highest level in over a year. Signed contracts were also 6.3% higher than they were in September of last year.
There were 470,000 new homes for sale at the end of September, which was up slightly from 468,000 in August. However, only 108,000 were completed, with the rest either under construction or not even started yet, so more available supply is still needed.
What’s the bottom line? This latest report measures signed contracts in September, so it captured people shopping for homes when rates were lower than they are now. October’s New Home Sales report, which will be released on November 26, could show some weakness, given the recent move higher in rates.