Sales of new U.S. single-family homes unexpectedly fell in December, likely held...
WASHINGTON - Sales of new U.S. single-family homes unexpectedly fell in December, likely held down by a shortage of more affordable homes, but the housing market remains supported by lower mortgage rates.
November’s sales pace was revised down to 697,000 units from the previously reported 719,000 units. Sales last month were concentrated in the $200,000-$749,000 price range. New homes priced below $200,000, the most sought after, accounted for only 10% of sales. The housing market is being supported by cheaper mortgage rates after the Federal Reserve cut interest rates three times last year. The 30-year fixed mortgage rate has dropped to an average of 3.60% from its peak of 4.94% in November 2018, according to data from mortgage finance agency Freddie Mac.
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