Purchases of New Home Sales Rise at Rapid Pace in November

Bloomberg writer Michelle Jamrisko reported today that, “Purchases of new U.S. homes increased in November to the second-fastest pace in almost nine years as the beginning of a spike in mortgage rates persuaded buyers to quickly sign contracts.

“Sales rose 5.2 percent to a four-month high of a 592,000 annualized pace, Commerce Department data showed Friday. The median forecast in a Bloomberg survey was for a 2.1 percent gain to 575,000. The advance included the largest gain in the Midwest market since October 2012 and the fastest pace of demand in the West in almost nine years.

Home sales are closing in on the strongest year in a decade, supported by a robust labor market and, until recently, the lowest mortgage rates since the 1970s. Progress has been gradual, however, with residential construction contributing little to economic growth as higher prices and stricter lending standards turn more Americans into renters.”

Graph From Bloomberg News.

Graph From Bloomberg News.

Today’s article added that, “The median sales price of a new house decreased 3.7 percent from November 2015 to $305,400, Friday’s report showed.”

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