India, Oct. 28 -- Sales of new single-family homes in the US fell 0.6% in September as higher mortgage rates linked to the Middle East conflict made it harder for buyers to afford homes. Sales fell to a seasonally adjusted annual rate of 676,000 units in September, the US Census Bureau said on Tuesday. This was lower than the revised annual rate of 680,000 units recorded in August.

The government revised August's new home sales rate to 680,000 units from the earlier estimate of 684,000 units, showing that sales were weaker than previously reported, according to the Census Bureau.

Economists polled by Reuters had expected new home sales to fall to an annual rate of 650,000 units in September. The actual figure of 676,000 units was higher...