Although the rate of new home sales slowed down over the course of the year, they ended 2021 with a bang. According to data from the U.S. Census Bureau and the Department of Housing and Urban Development, there was an 11.9 percent month-over-month increase in December in new home sales. This was the largest monthly increase reported since March 2021.
Despite the end-of-year resurgence, it was hard to beat the surge seen at the beginning of 2021. The December new home sales rate of 811,000 was 14.0 percent below the annual rate of 943,000 in December 2020 and well below the 993,000 in January 2021.
Inventory levels of newly constructed homes improved last year when compared to 2020 when the pandemic led to the residential construction industry coming to a near standstill.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (877) 700-0942 and your questions may be featured in an upcoming article.
