U.S. new home sales exceed expectations in January

WASHINGTON (Reuters) – Sales of new U.S. single-family homes increased more than expected in January, boosted by historically low mortgage rates and an acute shortage of previously owned houses on the market.

New home sales rose 4.3% to a seasonally adjusted annual rate of 923,000 units last month, the Commerce Department said on Wednesday. December’s sales pace was revised higher to 885,000 units from the previously reported 842,000 units.

Economists polled by Reuters had forecast new home sales increasing 2.1% to a rate of 855,000 units in January.