New U.S. home sales have rebounded, but will the jump last? – National [Video]

Sales of new U.S. single-family homes rebounded in November after being depressed by hurricanes in the prior month, but rising mortgage rates could hamper sales next year.

New home sales jumped 5.9% to a seasonally adjusted annual rate of 664,000 units last month, the Commerce Department’s Census Bureau said on Monday. The sales pace for October was revised higher to a rate of 627,000 units from the previously reported 610,000 units.

Economists polled by Reuters had forecast that new home sales, which account for about 15% of U.S. home sales, would rebound to a rate of 660,000 units. New home sales are counted at the signing of a contract, and can be volatile on a month-to-month basis. They increased 8.7% year on year in November.

The average rate on the popular 30-year fixed-rate mortgage rose to 6.72% last week after falling to 6.60% in the prior week, data from mortgage finance agency Freddie Mac showed.