High mortgage rates send new home sales tumbling

In August, sales of new U.S. homes hit a 5-month low due to sky-high mortgage rates, which have been near a 23-year high. This has strained prospective homebuyers' ability to afford a dwelling, leading to a decrease in sales. Homebuilders have been offering incentives to try and offset the impact of the elevated mortgage rates, but mortgage rates at current levels represent an affordability hurdle that many house hunters are increasingly unable, or unwilling to take on.