U.S. new-home sales rise by 7.2% despite weakness in the broader sector

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U.S. new-home sales rise by 7.2% despite weakness in the broader sector
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This is the fourth month in a row that new-home sales have grown — despite existing-home sales continuing their downward slide.

The numbers: U.S. new-home sales rose 7.2% to a seasonally adjusted rate of 670,000 in January, up from a revised 625,000 in the prior month, the Commerce Department reported Friday.

The January sales figure beat analyst estimates. Analysts polled by the Wall Street Journal had forecast new-home sales to come in at 620,000 in January.New-home sales rose a revised 7.2% to 625,000 in December, compared with the initial estimate of a 2.3% increase to 616,000.Key details: The median sales price of a new home sold in January was $427,500.

Regionally, the South led the U.S. in the number of new homes sold, with the figure surging by 17.1%.Big picture: As mortgage rates take off, home builders are offering incentives like mortgage-rate buydowns to entice buyers — and it’s working.

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