New home sales in the United States fell more than the market had expected in October, according to Bloomberg. Data from the Census Bureau show a 5.6% drop from September, with an annualized sales rate of 679,000 homes, while inventory reached its highest level since January. Existing-home sales also fell in October, marking their sharpest decline since January and reaching their lowest level since 2010.

The main reason for the decline lies in the mortgage rate, which reached nearly 8% in October—the highest in many years—although it began to ease in November amid the perception that the Federal Reserve’s cycle of rate hikes has come to an end, according to Bloomberg.

The average price of a new home in the U.S. has fallen 17% compared to a year ago, reaching US$403,900. This decline reflects the growing difficulties Americans face in buying homes. Despite the decline, prices remain above pre-pandemic levels.

If the Fed's cycle of raising its benchmark rate has indeed come to an end and mortgage rates continue the downward trend seen in November, as the market believes, we will begin to see a light at the end of the tunnel for home sales, although rising prices have left many Americans far from realizing their dream of homeownership.