U.S. New Home Sales See Modest January Rise but Face Uncertainty from Rising Rates

New U.S. single-family home sales rose 1.5% in January to an annual rate of 661,000 units, less than expected.

Sales fell sharply in the South, dropping 15.6% to the lowest level since September 2022.

Sales rose in other regions like the Northeast, Midwest, and West.

Mortgage rates have risen recently which could moderate home sales going forward.

There were 456,000 new homes on the market at the end of January, representing 8.3 months supply at the current sales pace.