New Home Sales Startle Experts
New home sales in October jumped to the highest level since February, 1987, the government said today, surprising analysts who have been expecting rising interest rates this year to dampen sales.
Adding to the robust picture, the government sharply revised its September figure to a 1.4% drop, up from the previously estimated 7.8% decline. Last year, most economists were expecting 1988 sales to be lower as interest rates rose. However, sales in the first 10 months of the year are 0.2% higher than the same period last year.