U.S. new home sales fall modestly from five-year peak, prices up

[Omaha Steve]

Source: Chicago Tribune-Reuters

WASHINGTON - Sales of new U.S. single-family homes fell modestly in November from a five-year high and prices pushed higher, indicating the housing market is weathering higher mortgage rates.

The Commerce Department said on Tuesday sales fell 2.1 percent to a seasonally adjusted annual rate of 464,000 units. Despite the fall from October's revised 474,000 pace, which was the highest level since July 2008, home sales retained the bulk of the previous month's revised 17.6 percent increase.

Sales had previously been reported to have increased 25.4 percent in October but to a 444,000 annual pace.

Economists had expected new home sales, which are measured when contracts are signed, to show a 445,000 unit pace in November. Compared with November last year, sales were up 16.6 percent.


FULL story at link.



Read more: http://www.chicagotribune.com/business/breaking/sns-rt-us-home-sales-20131224,0,7530971.story

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A new subdivision project of residential homes in shown in Highland, Maryland (Gary Cameron Reuters, / September 25, 2013)

[DCBob]

1. In related news.. proposed new mortage fees will be delayed or cancelled.

"Rep. Mel Watt, D-N.C.—who has been confirmed as the new head of the FHFA but not yet sworn in—made a major announcement that will directly affect mortgage rates. He said he would delay a decision made by current acting director, Ed DeMarco, to hike fees charged to lenders by Fannie and Freddie.

"I felt that it was important to announce my intentions now because of the prospect that some lenders could start to price the announced changes into the market well before the effective dates of the changes outlined in the FHFA's December 9, 2013 News Release," Watt wrote in the email sent from his personal account."

http://www.cnbc.com/id/101293139

Its possible the slowing of the housing market may have played into this decision.

We are looking to buy next year so this is good news for us. Its already tough enough get a loan.