Sales of new U.S. single-family homes fell slightly in October after increasing for two ⁠straight months, though declining prices amid still-elevated inventory could support the new housing market this year.

New home sales slipped 0.1% to a seasonally adjusted annualized rate of 737,000 units, the Commerce Department's Census Bureau said Tuesday.

Sales increased to a rate of 738,000 units in September from 711,000 ‍in August. The data was delayed by the 43-day shutdown of the ‍government.

New home sales account for a small share of U.S. home sales and tend to be volatile on a month-to-month basis.

They are ⁠counted at the signing of a contract. New home sales jumped 18.7% on a year-over-year basis in October.

Though mortgage rates fell in 2025, some of the stimulus ​from lower borrowing costs was offset by jitters over the labor market.

Mortgage rates remain considerably higher than they were three years ago. President Donald Trump last week ordered the Federal Housing Finance Agency — which ‍oversees mortgage finance giants Fannie Mae and Freddie Mac — to purchase $200 billion of bonds issued by the ⁠two companies in a bid to bring down mortgage rates.

Mortgage rates track the benchmark 10-year Treasury yield, which pushed higher on Monday following news that the Trump administration had opened a criminal probe of Federal Reserve Chair Jerome Powell over a building renovation project. Analysts saw a modest ⁠impact from the mortgage purchases.

"With long-term ​Treasury yields still above 4% ⁠and facing persistent upward pressure from large fiscal deficits and above-target inflation, mortgage rates are likely to stay elevated," said Mike ‍Sanders, head of fixed income at Madison Investments.

"Any attempt by the Fed to force through rate cuts could trigger further ‌selling at the long end of the curve, ultimately offsetting the impact of the $200 billion purchase program."

The median new house price dropped 8.0% to $392,300 in October from a year earlier. ⁠Weak demand ​and still-high inventory are slowing ‍house price inflation.

New housing inventory was unchanged at 488,000 units in October. Supply surged to 504,000 in March and May, which was the highest level ‍since late 2007

At October's sales pace, it would take 7.9 months to clear the supply of new houses on the market, unchanged from September.