U.S. new house gross sales rebound in November after hurricane

WASHINGTON (Reuters) – U.S. gross sales of latest single-family properties rebounded in November after being depressed by hurricanes the earlier month, however rising mortgage charges might dampen gross sales subsequent yr.

New house gross sales jumped 5.9% to a seasonally adjusted annual charge of 664,000 models final month, the Commerce Division’s Census Bureau reported Monday. The gross sales tempo for October was revised upward to 627,000 models, in comparison with the beforehand reported 610,000 models.

Economists polled by Reuters forecast that new house gross sales, which make up about 15% of U.S. house gross sales, would rebound to a charge of 660,000 models. New house gross sales are recorded on the signing of a contract and could be unstable from month to month. They elevated by 8.7% year-on-year in November.

The common charge on the favored 30-year fixed-rate mortgage rose to six.72% final week after falling to six.60% the week earlier than, based on knowledge from mortgage finance firm Freddie Mac.

The Federal Reserve final week lowered its benchmark in a single day rate of interest by 25 foundation factors, to the vary of 4.25% to 4.50%, however deliberate solely two charge cuts in 2025, citing the continued resilience of the economic system and continued excessive inflation.

In September, the Fed had forecast charge cuts of 4 quarter-points in 2025. The shallower charge reduce path subsequent yr within the newest projections additionally mirrored uncertainty over the insurance policies of the president-elect’s new administration Donald Trump, together with tariffs on imported items, tax cuts. and mass expulsions of undocumented immigrants, which economists have warned could be inflationary.

The yield on 10-year US Treasury bonds reached a brand new 6-and-a-half-month excessive final week. Mortgage charges observe 10-year Treasury bonds.

(Reporting by Lucia Mutikani; enhancing by Mark Porter)