Sales of new U.S. single-family homes fell more than expected in January as persistently high mortgage rates sidelined potential buyers, the latest indication that housing market and overall economic activity slowed early in the first quarter.
The steep decline in new home sales, reported by the Commerce Department on Wednesday, also likely reflected the impact of snowstorms and extremely cold weather in much of the country last month. The report followed data this month showing a decline in retail sales in January and a job growth cooldown.
The outlook for the busy spring home selling season is cloudy, with mortgage rates not expected to budge much from current levels amid policy uncertainty. The median house price increased to more than a two-year high in January, even as supply rose to levels last seen at the end of 2007.
Please select this link to read the complete article from Reuters.