The housing activity for the new housing construction began in the year less, as high real estate mortgages pushed buyers to the side lines.
New homes sales decreased by 10.5 % in January to a seasonal average rate of 657,000 units, a decrease from its revised rate in December of 734,000 Census office data Released on Wednesday. This was much lower than Bloomberg consensus at 680,000.
Some hunters resisted the purchase due to expensive borrowing costs. Real estate mortgage rates amounted to 7 % in January and remain within the same range.
The costs of high housewives have affected builders in desalination of the deal for budget -conscious homes.
Ryan Marshall, CEO of Pultegroup (PHM) told investors and analysts in a fourth -quarter profit call in late January that “the ability to bear costs is likely to have the opposite winds there, but I still think the economy will discover ways to solve it.”
However, potential buyers deal with high home prices. The average selling price for new homes increased to 446,300 dollars from $ 427,000 in January.
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