New-Home Sales Slip to Year’s Lowest Level

Sales of new homes declined for a third straight month in September, hitting the lowest level this year, the Commerce Department said. Total sales fell 1% to a seasonally adjusted annual rate of 822,000--the slowest pace since 805,000 in December last year--after declines of 4.9% in August and 5% in July. Wall Street was expecting a modest pickup in September sales. Economists said many of the elements for a strong housing market--low interest rates and a strong employment market--were still in place but that these conditions may not persist into the new year. The Midwest was the only region that showed a sales increase. In the West, sales fell 5.5%.