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Economics Gazette

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October 22, 2019

Sales of new homes in USA grew by 3.7%

New homes saleAmericans bought more homes in January 2017, after last month recorded a sharp decline. The sales of new homes grew by 3.7% to a seasonally adjusted 555,000 units annual growth rate, reported the Commerce Department on Friday. The increase on an annual basis was 5.5%. The robust employment growth and signs of rising wages support consumer confidence, which also increase the presidential elections here. More confident consumers are more willing to buy homes.

The data earlier this week showed that sales of existing homes rose to its highest level in 10 years.

The steady growth in housing sales is despite or precisely because of the surge of interest on loans, which are monitored by the autumn of last year. Many buyers rush to purchase presumably to forestall further increases.

The average fixed rate on 30-year mortgages were 4.16% this week, unchanged from the previous period. This is still well above the average of 3.65% last year.

Existing homes came in for the month of January with a decent 3.3% increase month over month continuing the overall move higher for housing. However, new homes sales have lagged behind, and despite the large drop in December month-over-month.

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