Sales of New Homes Skid 9.6%

Sales of new homes fell 9.6% in October, the sixth setback in the last seven months, the government reported today.

Home sales boomed last spring as mortgage rates headed below 10% for the first time this decade. Sales peaked at an annual rate of 924,000 units in March and since that time have been posting consistent declines. Still, for the first 10 months of this year, sales are running 10.5% ahead of the pace set in 1985, and analysts believe this will be the best year for housing since 1978.