Housing

Builders’ confidence in the market for new single-family homes was steady but affordability issues still vex the market.

Sales of new U.S. homes in January fell to the weakest pace since October, driven by a decline in the Midwest as still-elevated prices keep buyers on the sidelines.

U.S. new-home construction rebounded by more than expected in January amid strength in single-family starts and a nine-month high for permits, signaling the market is stabilizing thanks to lower mortgage rates.

Lower mortgage rates and more-affordable properties offered some relief for buyers.

U.S. construction spending posted the smallest annual increase since 2011 as homebuilding slowed amid higher borrowing costs and a glut of apartments in some areas.

Pending home sales rebounded 4.6% to an index reading of 103.2 in January, after a revised 2.3% decline to 98.7 in December.

U.S. new-home construction in December fell to the lowest since September 2016, as builders held back during a turbulent month for financial markets.

Existing home sales were down 1.2% to a seasonally adjusted 4.94 million-unit rate in January.

Builders’ confidence in the market for new single-family homes grew as the National Association of Home Builders' housing market index climbed to 62 in February from 58 in January.

Pending home sales dropped 2.2% to an index reading of 99.0 in December, after a revised 0.9% decline to 101.2 in November.