Reports showed that sales were up in November 2022 even with the skyrocketing home prices and higher mortgage rates. According to the US Department of Housing and Urban Development and the US Census Bureau from October to November of 2022 there was a 5.8% rise in sales of newly constructed homes making it the second month in a row for sales increases. 
New single-family houses were up from a seasonally adjusted annual rate of 640,000 which was up 35,000 from October. This was down 756,000 from this time last year. The median price for a new home dropped to $471,200 but this was still higher than the median price last year which was $430,000.
“New home sales rose more than expected, but the big picture still is bleak for most Americans looking to buy,” says Robert Frick, corporate economist at Navy Federal Credit Union. Unfortunately, the median new construction home price is still out of reach for the average American household due to the higher mortgage rates.
In fact, mortgage rates were the highest for 2022 in November. The average mortgage rate for a 30-year fixed-rate loan was 7.08%. “The combination of high mortgage rates and economic uncertainty is still causing some hesitation among buyers, but an increase in sales is a positive indicator. November can traditionally be a time of slower sales due to the beginning of the holiday season, so it is promising that this year we are seeing sales increase,” says Kelly Mangold, a principal at RCLCO Real Estate Consulting.
“Although there is a possible recession looming on the horizon, buyers remain optimistic enough to purchase now before possible additional rate hikes or other economic turmoil,” says Mangold.
