New U.S. Home Sales at 10-Month Low as Mortgage Rates RiseBy
Months’ supply of houses for sale at highest since Sept. 2015
Mortgages had become most expensive in more than two years
Purchases of new U.S. homes fell in December to a 10-month low, suggesting the post-election jump in mortgage rates pushed out potential buyers.
Single-family house sales dropped 10.4 percent, the most in almost two years, to a 536,000 annualized pace, Commerce Department data showed Thursday. The median forecast in a Bloomberg survey was for 588,000.
The figures indicate that the increase in mortgage rates curbed momentum in the housing market after steady job gains and historically low borrowing costs helped push full-year sales to the highest since 2007. Stricter lending standards also remain a hurdle for buyers this year…
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