U.S. new home sales drop; record low mortgage rates underpinning demand

WASHINGTON (Reuters) – Sales of new U.S. single-family homes unexpectedly fell in September after four straight monthly increases, but the housing market remains supported by record low mortgage rates and demand for more space as the COVID-19 pandemic drags on.

FILE PHOTO: A home under construction stands behind a “sold” sign in a new development in York County, South Carolina, U.S., February 29, 2020. REUTERS/Lucas Jackson/File Photo

The decrease in sales reported by the Commerce Department on Monday followed data last week showing single-family homebuilding and permits racing to levels last seen in 2007 in September. Confidence among homebuilders hit a record high in October, while sales of previously owned homes jumped to their highest level in more than 14 years in September.

“While there could be some ups and downs along the way, we still look for strength in the housing market as low mortgage rates boost activity and

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