Sales of new U.S. single-family homes experienced a sharper-than-expected decline in January, as persistently high mortgage rates deterred potential buyers, signaling a slowdown in the housing market and broader economic activity early in the first quarter, according to Reuters. The Commerce Department reported a steep drop in new home sales, which was exacerbated by snowstorms and extreme cold across much of the country last month.
New home sales plunged 10.5% in January, following a revised December sales rate of 734,000 units, up from the previously reported 698,000 units. Sales fell by 20.0% in the Northeast and dropped 16.7% in the Midwest, likely due to freezing temperatures. In the South, sales decreased by 14.8%, impacted by winter storms, while the West saw a 7.7% increase despite California wildfires.
This report aligns with other data showing a decline in retail sales in January and a slowdown in job growth.
— news from Greater Baton Rouge Business Report