New Home Sales Rise 5.9% in November

Sales of new single-family homes in the U.S. rose by 5.9% in November, reaching a seasonally adjusted annual rate of 664,000, up from 627,000 in October. This increase, partly attributed to incentives offered by builders and the resolution of delays caused by hurricanes, was slightly below the consensus estimate of 669,000. The year-over-year sales growth was 8.7%, despite being hampered by high mortgage rates, which rose to 6.72% last week. The Federal Reserve's projections indicate a continuation of elevated rates, impacting both buyers and builders by increasing monthly payment burdens and financing costs. The median price of new homes fell to $402,600, influenced by a rise in sales of lower-priced homes. While the new-home market shows resilience, constrained inventories and high prices continue to challenge potential buyers.