New-home sales approach fastest pace since 2008

MarketWatch
(12/24/2013 10:41 AM, Ruth Mantell)

WASHINGTON (MarketWatch) — Sales of new single-family homes declined last month, but remained close to the fastest pace since 2008, with buyers shaking off rising mortgage rates, according to government data released Tuesday.

Sales of new single-family homes fell 2.1% in November month to a seasonally adjusted annual rate of 464,000, down from a rate of 474,000 in October, which was the fastest pace since July 2008, the U.S. Commerce Department said. Economists polled by MarketWatch had expected a November sales rate of 440,000, compared with a previously estimated October rate of 444,000.

Rising mortgage rates hit home sales over the summer, but buying has rebounded in recent months. Indeed, Tuesday’s data on home sales point to a market in which buyers are adjusting to rising mortgage rates and prices, going forward with purchases, though some are scaling back plans when it comes to factors such as size and location.