US new home sales fall as mortgage rates top 7%

US new home sales fell in September as mortgage rates topped 7%, Commerce Department data showed Tuesday.

Sales declined 0.6% from August to a seasonally adjusted annual rate of 676,000. The rate was 5.3% lower than in September a year earlier.

The 30-year fixed mortgage averaged 7.03% in late September, according to Freddie Mac data, adding pressure to buyers already facing affordability concerns.

The median sales price of new homes sold in September rose 3.9% from August to $400,400.