New home sales increase in October

The U.S. Census Bureau recently reported that sales of new single-family homes in October increased 1.3 percent compared with September, and 8.9 percent from October 2010. Sales are reported at an annual rate of 307,000 compared with 303,000 in September and 282,000 in the same month last year.

The median sale price of new houses sold in October was $212,300, and the average price was $242,300. The bureau reported 162,000 new houses remained for sale as of the end of October, representing a supply of 6.3 percent at the current sales rate.

One factor possibly boosting home sales is a continued low interest rate. The National Bureau of Economic Research reported the 30-year fixed mortgage rate dropped to 3.98 percent from 4 percent last week, while the mortgage rate for 15-year fixed loans is down to 3.3 percent from 3.31 percent a week prior.

The Boston Herald reported that the low interest rates have increased refinancing applications, as homeowners try to avoid foreclosure and remain current on their home loan payments. Homeowners who can afford to refinance have likely done so, securing interest rates well below 5 percent.

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