New US single family home sales hit 10-month high

New Home Sales in December

New US single-family home sales hit a 10 month high in December, another indication that the housing sector remains strong despite a slow down in the overall global economy.

The Commerce Department said on Wednesday sales rose 10.8% to a seasonally adjusted annual rate of 544,000 units.

Sales last month were likely helped along by unseasonably mild weather and a rise in the supply of homes on the market.

The positive housing data didn’t do much to help US financial markets, which are suffering from poor performances by Apple and Boeing. Investors were also awaiting the outcome of the Federal Reserve’s two-day policy meeting later on Wednesday.

New home sales soared 14.5% to 501,000 units in 2015, the highest level since 2007. New home sales, which account for about 9.1% of the housing market, were up over the 500,000 unit-rate last month.

This new report arrives days after a Friday report shows that home resales in December rose after a 19-month low in November.

There may be more good news in store for January. The Mortgage Bankers Association showed applications for home purchase loans increased 8.8% last week from a week earlier.

Home sales are remaining on pace thanks to mortgage rates that have remained near historic lows, despite a recent interest rate increase by the Federal Reserve.