Sales of new U.S. homes rose for the third straight month in December as high mortgage rates continued to decline, offering some relief for prospective homebuyers.
New single-family home purchases rose 2.3% to a seasonally adjusted annual rate of 616,000 units, the Commerce Department reported Thursday. Economists surveyed by Refinitiv expected new home sales — which account for a small percentage of total sales — to hit 617,000 last month.
“The new home sales market continues to face headwinds from rising costs, affordability challenges and ongoing supply-side headwinds,” said Odeta Kush, the deputy chief economist at First American. “Prices will need to continue to adjust down and builders will likely continue incentives to entice buyers.”
This is a developing story. Please check back for updates.