Bidenflation: New Home Prices Soared and Sales Dropped More Than Expected in January
Sales of new houses in the U.S. dropped by more than expected in January as mortgage rates climbed ahead of the expected March hike in the Federal Reserve’s rate target.
Purchases of new home sales plunged 4.5 percent in January compared with December to a seasonally adjusted annual rate of 801,000.
Analysts polled by Econoday expected home sales to fall to a seasonally adjusted annual rate of 804,000. The range of forecasts was wide, with a low of 716,000 and a high of 850,000, indicating a lot of uncertainty as the housing market is beset by rising mortgage rates and still very high home prices.
Sales were 19.3 percent below January of 2021, when sales stood at an adjusted annual rate of 993,000, the highest level since 2006.
New home sales have been hampered by lower than expected levels of home construction. Although housing starts are at historically high levels, they are considered low compared with the demand for housing. – READ MORE
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