Home Sales Jump

Sales of new homes jumped in January to an annualized rate of 764,000, according to the Census Bureau and the Department of Housing and Urban Development.

According to Census data, January’s pace increased from December, which was upwardly revised from 694,000 to 708,000.

January’s total, which is 7.9% above December’s pace, was also 18.6% higher than January 2019, when new home sales hit an annualized rate of 644,000.

During the month, new home sales surged boosted by lower interest rates, warm weather and an uptick in home building, said Robert Frick, corporate economist for Navy Federal Credit Union. 

“We can expect the trend to continue as mortgage rates have fallen even lower in recent weeks, and more jobs are driving up demand,” Frick said. “However, scant evidence exists that home builders are making more low-priced homes, which are sorely needed by first-time homebuyers.”