Sales of new homes across the nation jumped in September as customers responded to more incentives from builders and a drop in mortgage rates, Bloomberg reports.
Sales of new single-family homes increased 4.1% last month to an annualized 738,000, government figures showed Thursday. Economists had previously predicted 720,000.
Builders are working to sell off inventories that are hovering near records after ramping up construction during the pandemic recovery by offering incentives such as discounts and mortgage rate buydowns. The supply of new houses rose 0.4% in September to the highest level since 2008.
The industry is already looking optimistically toward the spring selling season. An index of builder sentiment published by the National Association of Home Builders reached the highest level in four months in October, fueled partly by the prospect of lower mortgage rates.
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