The US housing market is struggling hard to recover from the Great Recession of 2008.
The Commerce Department on Wednesday said that the new home sales increased less than expected in the month of October and the figures in September were revised downward.
The sales of newly build homes jumped 0.7 percent to a seasonally adjusted annual rate of 458,000 last month from September.
But the market analysts had forecasted the home sales to hit around 470,000.
Bill Banfield, vice president of Quicken Loans, said, “The slight surge in the sales of new homes in October is somewhat discouraging, as it is more of the same of what we’ve seen throughout 2014 — tepid growth in housing constrained by a slowly recovering economy.”
The figures in September were revised down to 455,000 from the previously reported rate of 467,000.
The pending sales dropped 1.1 percent last month from the September’s figures, as weak growth in wages and tight credit held back some buyers, according to the trade group.