New Home Sales Rise in January Despite Challenges

Sales of new single-family homes in the U.S. saw a modest increase in January, despite facing headwinds from elevated mortgage rates and a cold weather snap.

Sales of new single-family homes rose 1.8% year-on-year in January, reaching a seasonally adjusted annual rate of 661,000 units.
The increase comes amid challenges such as high mortgage rates, with the average 30-year fixed mortgage rate rebounding to 6.9%.
Demand for new homes is supported by a persistent shortage of previously owned homes on the market.
Economists had expected a higher increase, forecasting sales to rise to a rate of 680,000 units.
The Federal Reserve has indicated it expects to cut interest rates this year, which could impact future housing market trends.