New home sales skyrocket

Sales of new single-family homes in January jumped 35 percent month over month to a seasonally adjusted annual rate of 543,000 units, indicating growth that dovetails with builders’ attitudes towards the housing market but contrasts with other data that’s seemed to reflect a slowdown, the Mortgage Bankers Association (MBA) reported.

“While the big jump may appear to conflict with other data, such as MBA’s purchase application index and NAR’s existing home sales data that point to a weak market for existing homes, our Builder Application Survey estimate is consistent with reports of homebuilder sentiment that show strength in the market for new homes,” said Mike Fratantoni, chief economist at the MBA.  “It is also worth noting that the significant January increase also followed a particularly slow pace of sales in November and December.”

Source: MBA