updated 10/26/2011 10:17:11 AM ET 2011-10-26T14:17:11

Sales of new U.S. homes rose in September after four straight monthly declines, largely because builders cut their prices.

The Commerce Department says sales rose 5.7 percent last month to a seasonally adjusted annual rate of 313,000 homes. Still, that's less than half the 700,000 economists say must be sold to sustain a healthy housing market.

The median sales price of a new home fell 3.1 percent to $204,400 — the lowest since October 2010. The number of new homes on the market was unchanged at 163,000, a record low.

Sales of new homes fell for four straight months before September and hit a six-month low in August. This year could be the worst year for sales since the government began keeping records a half century ago.

© 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Discussion comments


Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 4.68%
$30K home equity loan FICO 4.48%
$75K home equity loan FICO 4.12%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 11.44%
Cash Back Cards 16.49%
Rewards Cards 16.33%