⁍ New home sales fell 3.5% to a seasonally adjusted annual rate of 959,000 units last month.

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⁍ August’s sales pace was revised down to 994,000 units from the previously reported 1.011 million units.

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⁍ New home sales surged 32.1% year-on-year.

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– New home sales fell in September for the first time in four months, dropping 3.5% to a 959,000-unit annual rate, the Commerce Department announced today. Economists expected new home sales to rise 2.8%, according to Reuters. September’s sales pace was revised downward to a 994,000-unit rate from the previously reported 1.011 million units. September’s sales pace was the highest in more than 14 years, but they were still 32.1% higher than a year ago. The drop in new home sales “indicates that the housing market might be finally losing some steam,” says an economist at TIAA Bank in Jacksonville, Florida. “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 earlier pent-up demand for housing is released.” The 30-year fixed mortgage rate is at an average of 2.80%, according to data from mortgage finance agency Freddie Mac. The median new house price increased 3.5% to $326,800 in September from a year ago. New home sales last month were concentrated in the $200,000 to $399,000 price range. There were 284,000 new homes on the market last month, up from 282,000 in August. Just over two-thirds of the homes sold last month were either under construction or yet to be built. “The housing sector should remain supportive of growth at least for the next couple of quarters as strong demand drives new construction,” says one economist.