New home sales fell 10.5% in January to a three-month low of 657,000 units, as high mortgage rates, record prices, and severe winter weather kept buyers away.

Mortgage rates remained above 7%, discouraging purchases despite incentives from builders.

Analysts expect sales to rebound in February with improved weather, but concerns persist over mortgage rate volatility.

The median new home price rose to $446,300, adding to affordability challenges, Yahoo Finance has reported.

Homebuilders remain hopeful for a stronger spring selling season if rates stabilize.

Written by B.C. Begley