New homes sales decline by more than expected

A construction worker applies new roofing material to an existing house undergoing a total makeover in Washington, U.S. June 2, 2016.
REUTERS/Gary Cameron

New home sales came in lower than expected at 593,000 for the month of September according to the Census Bureau.

Analysts had projected new home sales to decrease by 1.0% from the prior month to a seasonally adjusted annual rate of 600,000.

August’s new home sales were revised down to 575,000 from 600,000, meaning sales increases by 3.1% between September and August despite missing sales total expectations.

The revised number means that the drop between July and August was even steeper than the 7.9% originally projected. This, however, followed a 13.8% increase for the month of July, which was the strongest since July 2007.