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U.S. New-Home Sales Slump to 587,000 SAAR in January, Lowest Since 2022

Higher mortgage-rate pressures now cloud prospects for a quick rebound.

Overview

  • Sales fell 17.6% in January to a 587,000 seasonally adjusted annual rate, below the 720,000 consensus and the weakest since October 2022.
  • December’s pace was revised down to 712,000 from 745,000, underscoring increased volatility in the series.
  • Inventory rose to 476,000 units and months’ supply expanded to 9.7 from 8.0, signaling slower absorption.
  • The median new-home price dropped 6.8% year over year to $400,500, with most homes sold priced under $500,000.
  • Reporters and analysts cited harsh winter weather for dampening showings, while recent increases in mortgage rates tied to higher oil prices and Treasury yields could restrain any near-term recovery.