US New-Home Sales Decline as Rising Mortgage Rates Sap Demand

Sales of new US homes fell in September, resuming a downtrend as decades-high mortgage rates push would-be buyers out of the market.

Purchases of new single-family homes decreased 10.9% to a 603,000 annualized pace following an unexpected gain in August, government data showed Wednesday. The median estimate in a Bloomberg survey of economists called for a 580,000 rate.

The figures reflect a slide in housing demand as the Federal Reserve aggressively boosts interest rates to combat the worst inflation in a generation. Mortgage rates rose to 7.16% last week, the...