New home sales jump more than expected in January to 10-month high

Sales of new U.S. homes rose for the fourth straight month in January to the highest level in nearly a year as buyers took advantage of a decline in mortgage rates.

New single-family home purchases rose 7.2% to a seasonally adjusted annual rate of 670,000 units, the Commerce Department reported Friday. Economists surveyed by Refinitiv expected new home sales — which account for a small percentage of total sales — to rise just 0.6% last month.

Sales in the South surged 17.1% last month to the highest annualized pace in close to a year. Across the rest of the country, sales plunged — including a 19.4% drop in the Northeast.

Other data indicates the housing market is still in the throes of a slowdown. A key measure of home-purchase applications fell last week to the lowest level since 1995 as mortgage rates marched higher, according to the Mortgage Bankers Association (MBA).

"This time of the year is typically when purchase activity ramps up, but over the past two weeks, rates have increased significantly as financial markets digest data on inflation cooling at a slower pace than expected," said Joel Kan, MBA's vice president and deputy chief economist.

https://www.foxbusiness.com/economy/new-home-sales-jump-more-than-expected-january-month-high