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U.S. New-Home Sales Decline for First Time in Three Months

  • Contract signings fell 4.5% in January as rates began rising
  • Construction not yet started on about 26% of homes for sale
New homes in San Diego, California.

New homes in San Diego, California.

Photographer: Bing Guan/Bloomberg
Updated on

Sales of new U.S. homes retreated in January after a flurry of purchases at the end of 2021, indicating a jump in mortgage rates may be starting to restrain demand.

Purchases of new single-family homes decreased 4.5% to a 801,000 annualized pace following a revised 839,000 in December, government data showed Thursday. The median estimate in a Bloomberg survey of economists called for an 803,000 rate.