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Thursday, January 20, 2022
HomeNewsEconomyNew Home Sales in U.S. Rise, Signaling Housing Market May Withstand Higher Rates

New Home Sales in U.S. Rise, Signaling Housing Market May Withstand Higher Rates

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new-home-construction-housing-starts

(Photo: Reuters)

The Commerce Department said Friday new home sales rose 3.7 to a seasonally-adjusted 555,000 units, which is 5.5% higher than a year ago. That’s a sign the housing market is healthy enough to withstand previous and future mortgage rate hikes, after a decline the previous month.

Solid job gains and some signs of rising wages have driven up consumer confidence, which has also risen since the presidential election. More confident consumers are more likely to buy homes. Sales of existing homes jumped to their highest level in a decade, according to data released earlier this week.

The rebound has occurred despite, or perhaps because of, a jump in mortgage rates since the fall. Many buyers could be accelerating purchases to get ahead of any further rate increases.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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