New home sales in the US dropped in November as mortgage rates slowly retreated from their highest levels this year.
Sales of newly constructed homes dropped 12.2% in November to a seasonally adjusted annual rate of 590,000 from a revised rate of 672,000 in October, according to a joint report from the US Department of Housing and Urban Development and the Census Bureau. Sales were up just 1.4% from a year ago.
Affordability challenges, particularly with high mortgage rates, likely kept buyers on the sidelines. Typical mortgage rates reached their highest levels in 23 years – hitting 7.79% for a 30-year, fixed-rate loan – and have been coming down since.
At a the prevailing 6.5% interest rate, a family would need an income of nearly $130,000 to be able to afford to purchase the median-priced new home in the U.S., according to calculations from Sturtevant. The median household income in the U.S. is about $75,000.
Check out these charts to see where home sales are trending in Virginia.