U.S. new home sales drop sharply in November

WASHINGTON (Reuters) – Sales of new U.S. single-family homes fell more than expected in November, but the housing market remains underpinned by historically low mortgage rates.

New home sales tumbled 11.0% to a seasonally adjusted annual rate of 841,000 units last month, the Commerce Department said on Wednesday. October’s sales pace was revised down to 945,000 units from the previously reported 999,000 units.

Economists polled by Reuters had forecast new home sales, which account for about 11.2% of housing market sales, slipping 0.3% to a rate of 995,000 units in November. New home sales are drawn from a sample of houses selected from building permits and tend to be volatile month-to-month.

New home sales jumped 20.8% on a year-on-year basis. The government reported last week that single-family homebuilding, the largest share of the housing market, rose in November to the highest level since April 2007. Reuters News

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