New home sales posted a solid gain last month, driven by strong buyer demand, low existing home inventory and buyers' anticipation of future higher mortgage rates. Sales of newly built, single-family homes in November rose 12.4% to a 744,000 seasonally adjusted annual rate from a downwardly revised reading in October, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. New home sales were down 14% compared to a year ago.
“Our members are seeing strong buyer traffic as continued low mortgage rates are helping fuel sales," said Chuck Fowke, chairman of the National Association of Home Builders (NAHB) and custom home builder from Tampa, Fla. “However, builders are still grappling with major supply chain issues and soaring materials costs, which are causing construction delays.”