US new dwelling gross sales rebound in November after hurricane drag

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

New dwelling gross sales jumped 5.9% to a seasonally adjusted annual fee of 664,000 items final month, the Commerce Division’s Census Bureau mentioned on Monday. The gross sales tempo for October was revised increased to a fee of 627,000 items from the beforehand reported 610,000 items.

Economists polled by Reuters had forecast that new dwelling gross sales, which account for about 15% of U.S. dwelling gross sales, would rebound to a fee of 660,000 items. New dwelling gross sales are counted on the signing of a contract, and could be risky on a month-to-month foundation. They elevated 8.7% yr on yr in November.

The typical fee on the favored 30-year fixed-rate mortgage rose to six.72% final week after falling to six.60% within the prior week, information from mortgage finance company Freddie Mac (OTC:FMCC) confirmed.

The Federal Reserve final week lower its benchmark in a single day rate of interest by 25 foundation factors to the 4.25%-4.50% vary, however projected solely two fee reductions in 2025, citing the economic system’s continued resilience and still-elevated inflation.

In September, the Fed had penciled in 4 quarter-point fee cuts in 2025. The shallower fee lower path subsequent yr within the newest projections additionally mirrored uncertainty over insurance policies from President-elect Donald Trump’s incoming administration, together with tariffs on imported items, tax cuts and mass deportations of undocumented immigrants, which economists have warned can be inflationary.

The yield on the U.S. 10-year Treasury observe touched a contemporary 6-1/2-month excessive final week. Mortgage charges monitor the 10-year Treasury observe.