Sales of new U.S. single-family homes rose—unexpectedly—in October in the face of still-high mortgage rates and home prices.

The latest Commerce Department report showed that new home sales rebounded 7.5% to a seasonally adjusted annual rate of 632,000 units last month.

The pace of September sales was revised down to 588,000 units from the 603,000 units reported earlier.

Analysts surveyed by The Wall Street Journal had forecast new-home sales would drop 5.5%. Still, it’s too early to say that this could be a turning point in the market.

“New home sales beat expectations, but a reversal of the general downward trend is doubtful for now given high mortgage rates and builder pessimism,” Robert Frick, corporate economist at Navy Federal Credit Union, told the Journal.

The median sales price of new houses sold in October was $493,000, up from $455,700 in the prior month. That’s up 15.4% from a year earlier, the Commerce Department said. 

The supply of new homes for sale rose 1.5% between September and October. That equals an 8.9-month supply at the current sales pace. This is up from a 5.7-month supply in January.

Regionally, sales rose the most in the Northeast and the South. Sales fell in the Midwest and the South, according to the report.

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