US new home sales miss forecasts in October

New home sales in the US shrank by 1.9% month-on-month in October to reach an annualised pace of 563,000, according to the Department of Commerce.

Economists had anticipated a reading of 590,000.

Sales were weakest in the Midwest where they dropped by 13.7% and strongest in the West, where they rose by 8.8%.

In comparison to a year ago, new home sales grew by 17.8%.

The median home sales price decreased from $314,100 in September to $304,500 in October, while the average home price fell from $364,100 to $354,900.

The supply of new homes for sales was steady at the equivalent of 5.5 months' worth.