US new home sales tumble in January on high mortgage rates


Higher inventory: Construction of a KB Home single family housing development in Menifee, California. The median house price increased to more than a two-year high in January, even as supply rose to levels last seen at end-2007. — Reuters

WASHINGTON: Sales of new US single-family homes fell more than expected in January as persistently high mortgage rates sidelined potential buyers, the latest indication that the housing market and overall economic activity slowed early in the first quarter (1Q).

The steep decline in new home sales, reported by the Commerce Department on Wednesday, also likely reflected the impact of snowstorms and extremely cold weather in much of the country last month.

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