New home sales fell more than expected.
New home sales fell by 1.9% at a seasonally adjusted rate of 563,000 in October, according to the Census Bureau.
Economists had forecast that new home sales came in at 590,000, down 0.5% month-over-month, according to the Bloomberg consensus.
Last month’s rate was revised down to 574,000.
“The new home sales market continues to underwhelm, taking baby steps forward and backward from month-to-month when what we really need to see are giant leaps,” wrote Svenja Gudell, Zillow chief economist, after the report.
“New homes currently spend about 3 months on the market, near all-time lows and an indicator of strong demand. Much more must be done to meet that demand if the market is to really re-balance and shift more in favour of buyers badly in need of a breather,” she added.