Americans bought new homes at an astonishing rate in September despite the skyrocketing interest rates.
According to the Commerce Department, new home sales in September exceeded expectations by a significant margin, with an annual rate of 759,000, up 12.3% from the previous month.
The sales are up 33.9 percent from a year ago.
The number represents new single-family home sales. It is seasonally adjusted and reported at an annual rate, indicating how many homes would sell if consumers made purchases for a full year at the same pace.
New home sales in September were growing at their quickest rate since February 2022, just before the Federal Reserve started hiking interest rates.
It is even more surprising given how quickly interest rates have increased in recent months that the market for new homes has been so robust. The 30-year fixed rate hit a 23-year high in September, averaging 7.20 percent. The 30-year average rate was 6.1 percent just a year ago.
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