New home sales soared last month as buyers swarmed the market before mortgage rates could rise even more

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Sales of new homes increased 12.3% to a seasonally adjusted rate of 759,000 units last month from the revised August rate of 676,000.

Steeper mortgage rates weren’t enough to smoke out demand for newly built homes, but the gains may not last.

Mortgage rates stayed steady for most of September, oscillating between 7.12% and 7.18% before turning higher in the last week, hitting aof 7.31%, per Freddie Mac. Rates have only marched higher since then, staying above 7% for 10 straight weeks where they likely will remain for the foreseeable future, experts say.

One way builders have been able to attract rate-conscious buyers — especially first timers — has been through incentives, Dietz said. But with mortgage rates fast approaching 8% this month and the weather turning cooler, buyers may step back and hibernate for a while before making a move. 'Probably the best use of cash': Warren Buffett likes businesses that dole out dividends — but he absolutely loves it when they do this instead. 3 'share cannibals' to watch now

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