Data released by the National Association of Federal Credit Unions on Tuesday showed a seven percent decline in new home sales in December–possibly the result of limited inventory and severe weather.
In December, new home sales fell from 445,000 units in November to 414,000 in December, though the figures represent a 4.5 percent increase over the previous year.
“Rising mortgage rates over the summer put downward pressure on new home sales, but activity increased when interest rates moderated in October,” NAFCU Research Assistant Doug Christman said. “Overall, new home sales improved significantly in 2013, and the housing market is expected to continue to support the broader economic recovery throughout 2014.”
The Midwest was the only region in the U.S. to see an increase in new home sales in December. Overall sales, however, increased from 2012 by 25 percent in the Midwest, 5.1 percent in the West and 4.1 percent in the South. Sales in the Northeast fell by 27.6 percent from last year.