New Home Sales, which measure signed contracts on new homes, rebounded in December, up 8% from November and beating forecasts as falling mortgage rates and the lack of existing homes for sale brought some buyers to the new construction market. Signed contracts were also 4.4% higher than they were in December 2022.
What’s the bottom line? Alicia Huey, Chair for the National Association of Home Builders, confirmed that “the solid new home sales rate in December was fueled by a lack of existing inventory in the resale market and declining interest rates.” She added, “The rise in sales also coincides with our latest builder surveys, which show a marked increase in future sales expectations because of falling mortgage rates.”