Weakness in the South drags down overall sales
- Sales of newly built homes in the U.S. rose 1.5% in January
- Mortgage rates rose to a six-week high at the end of January
- Activity is still far below the peak in August 2020
- New-home sales in the South dragged down the overall rate
- Median sales price of a new home sold in January rose to $420,700
- Supply of new homes for sale remained flat between December and January
- Overall, sales of new homes are up 1.8% compared with last year
- Newly built homes could continue to be a bright spot in the housing market
- Rising mortgage rates could dampen home-buying demand
- Major builder stocks were up in the morning trading session
Sales of newly built homes in the U.S. increased by 1.5% in January, despite a rise in mortgage rates. However, the pace of sales fell short of expectations on Wall Street, with economists forecasting higher numbers. The South experienced weakness in new-home sales, dragging down the overall rate. Despite the increase in January, sales are still below the peak reached in August 2020. The median sales price of a new home sold in January rose to $420,700. While the supply of new homes for sale remained flat between December and January, most regions reported an increase in sales, except for the South which saw a 15.6% drop. Overall, sales of new homes are up 1.8% compared to last year. The U.S. housing market is still facing a shortage of homes for sale, which could make newly built homes a bright spot as builders add fresh inventory. However, rising mortgage rates could dampen home-buying demand. Despite this, major builder stocks were up in the morning trading session.
Factuality Level: 3
Factuality Justification: The article provides factual information about the sales of newly built homes in the U.S. in January, including numbers, percentages, and trends. However, it lacks depth and context, contains unnecessary details like stock market reactions, and does not address potential biases or limitations in the data presented.
Criteria1: 2
Criteria2: 2
Criteria3: 4
Criteria4: 3
Criteria5: 3
Criteria6: 4
Criteria7: 2
Criteria8: 3
Criteria9: 3
Noise Level: 3
Noise Justification: The article provides some information on new-home sales in the U.S. for January, but it lacks depth, actionable insights, and scientific rigor. It contains a lot of repetitive information, filler content, and does not question popular narratives. The article also includes irrelevant details like stock market reactions that do not add much value to the main topic.
Financial Relevance: Yes
Financial Markets Impacted: The article provides information on the sales of newly built homes in the U.S., which can impact the housing market and the stocks of homebuilder companies such as D.R. Horton, Lennar, and Toll Brothers.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the sales of newly built homes in the U.S. and the impact of mortgage rates on buyer demand. While there is no mention of an extreme event, the information provided is relevant to the financial markets and housing industry.
Public Companies: D.R. Horton (DHI), Lennar (LEN), Toll Brothers (TOL), SPDR S&P Homebuilders exchange-traded fund (XHB)
Key People:
Reported publicly:
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