Home Buying

US new-home sales jumped nearly 17 percent in November

Sales of new homes soared, defying higher mortgage rates, but they’re still below year-ago levels.

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WASHINGTON (AP) — Sales of new homes in the United States soared in November, defying higher mortgage rates, but they’re still below year-ago levels.

The Commerce Department said Thursday that new-home sales jumped 16.9 percent in November from the previous month to a seasonally adjusted annual rate of 657,000.

The report was delayed by the 35-day government shutdown. Despite the healthy gain, sales remained 7.7 percent below the pace from a year ago.

The housing market stumbled badly at the end of the year as mortgage rates reached a seven-year high near 5 percent. Sales of existing homes plunged in December and were 3.1 percent lower in 2018 than the previous year.

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Steady price gains, higher borrowing costs, and a limited supply of available houses have discouraged many would-be buyers.

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