The October new home sales report from Census and HUD showed a 25% increase over a low September level. Both months were reported late and together because of the government closer in early October. The 444,000 level reported for October brings sales back to the levels that were established earlier this year. All four regions showed significant increases returning to levels at or above the second quarter averages.
The pause and decline in the third quarter appears to be a reaction to rising interest rates and the rising uncertainty around government debt and deficit resolution that led to the shut down in early October. As rates fell back and the shut down ended, consumers returned to the market. Even with the large variances, the 25.4% change is enough to be considered an increase at the 90% confidence level.
Read full article at NAHB @ http://eyeonhousing.org/2013/12/04/new-home-sales-up/