Sales of newly built homes in the US declined slightly in September, and builders made efforts to cut prices and provide promotional offers, which failed to offset the impact of soaring mortgage interest rates. According to data released by the US government on Tuesday, sales of newly built single-family homes fell 0.6% in September, at an annual discount rate of 676,000 units. This is higher than the median estimate of 651,000 units in the Bloomberg survey economists. The median sales price of newly built homes fell 3.9% year on year to 400,400 US dollars. There has been a year-on-year decline for seven of the first nine months of this year. The sluggish sales data for September highlighted the serious challenges facing the US housing market. Mortgage interest rates rose by about 0.5 percentage points last month and rose to the highest level in nearly three years in early October, and have only declined slightly since then. Soaring borrowing costs have dampened demand from potential buyers and pushed a homebuilder confidence indicator to its lowest level in 14 years. According to data released on Tuesday, the inventory of new homes for sale fell 2.3% year on year to 476,000 units in September. At the current sales rate, this is equivalent to 8.4 months' supply, the lowest since this year, but still far above pre-pandemic levels.

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