Quotes from Capital Economics:
New home sales were still suffering the effects of the rise in mortgage interest rates in September, but fully made up for their earlier weakness in October. Higher rates do not appear to have done lasting damage to the housing recovery.
The number of new home sales fell by 6.6% m/m in September but rose by 25.4% m/m in October. The upshot was that new home sales totaled 444,000 annualised in October. There were also some fairly large revisions to the data for earlier months
The sharp increase in mortgage interest rates between May and August took a heavier toll on housing market activity than we had originally thought. However, this blow looks to have been entirely transitory. That's despite 30-year mortgage interest rates which are on average 60 basis points higher, which lends further support to our view that higher mortgage interest rates will not derail the housing recovery
Turning to the supply picture, new homes for sale increased by 7.3% m/m in September but then fell by 3.7% m/m in October, to 183,000. There has been significant volatility in the months' supply of unsold new homes. But the bigger picture is that supply conditions are slowly loosening