Sales of new U.S. homes fell unexpectedly in November as buying appetites eased despite a dip in mortgage rates to the lowest levels in five months, a government report showed on Wednesday.
Purchases of new single-family homes fell 2.4 percent to a seasonally adjusted 1.082 million unit annual rate last month from an upwardly revised 1.109 million unit clip in October, the Commerce Department said. It was the third consecutive monthly drop in sales of new homes, which are typically more expensive than resale homes.
Analysts polled by Reuters had been expecting an increase to a 1.120 million new home sales pace.
A separate report out on Wednesday showed applications for U.S. home loans fell last week as consumers' focus shifted to holiday shopping.
The Mortgage Bankers Association said applications for home loans fell 6.8 percent in the week ended Dec. 19.
"It's a holiday story," said Doug Duncan, chief economist at the trade group.
While the biggest fall came in refinancing bids, applications for mortgages to buy homes also dropped.
The declines in home sales and mortgage applications came even as the average rate for a 30-year mortgage fell 0.09 of a percentage point to 5.62 percent, the association said, the lowest level since the week ended July 11.
The Commerce Department report said inventories of homes available for sale rose to 363,000, the highest level since April 1996. At the current sales pace, it would take 4.1 months to deplete this supply.