National Association of Realtors

New-home sales rebound in October

Sales of new homes recovered in October after suffering a steep drop in September, indicating a return to stability in the housing market.

The Commerce Department says new-home sales climbed 10.7% last month to a seasonally adjusted annual rate of 495,000. This rebound followed a 12.9% plunge in the sales rate during September.

Americans recovered much of their appetite for owning new homes this year. Purchases have surged 15.7% year-to-date, benefiting from the solid hiring gains and low mortgage rates.

The new-home sales report tends to be volatile from month to month. Home-buying surged 135.5% in the Northeast in October, while rising less aggressively in the...