New home sales unexpectedly climb in October despite steep mortgage rates

Sales of new U.S. homes unexpectedly jumped in October even as high home prices and mortgage rates not seen in over a decade have rapidly eroded affordability. 

New single-family home purchases rose 7.5% to a seasonally adjusted annual rate of 632,000 units, the Commerce Department reported Wednesday. Economists surveyed by Refinitiv expected new home sales — which account for a small percentage of total sales — to fall 5.5% last month.

On an annual basis, new home sales are still down 5.8%.

The median new house price climbed nearly 15.4%...