The surge in sales shows demand for new homes remained strong during the fall and lenders continued to process loans despite the government shutdown.
This surprised many economists who predicted a slight decline in October sales. Overall, October new home sales are nearly 22% above the level a year ago.
Sales of newly constructed homes jumped to a 444,000 seasonally adjusted annual rate in October from a 354,000 rate in September, the Census Bureau reported Wednesday morning.
The October sales rate is the highest since this summer when sales hit a 450,000 rate in June.
Sales jumped 19% in Northeast, 34% in the Midwest, 28% in the South and 15% in the West.
Builders had 183,000 new completed homes for sale going into November, which provides a five-month supply at the current rate.