Marketing

Purchases of new homes increased in November to the second-fastest pace in almost nine years as the beginning of a spike in mortgage rates persuaded buyers to quickly sign contracts.

A consumer's ability to afford to purchase a home during the fourth quarter was at its lowest level in eight years due to rapid price appreciation, moderate wage growth and the post-election increase in interest rates.

Mortgage rates continued their climb, with the 30-year reaching its highest level since April 2014, after the Federal Reserve increased its benchmark lending rate.

Sales of previously owned U.S. homes unexpectedly increased in November to the strongest level since early 2007, ahead of a jump in borrowing costs, National Association of Realtors data showed.

While the housing market is expected to cool down a bit in 2017, the National Association of Realtors has identified these 10 metro areas as the top markets for next year.

Higher mortgage rates are expected to put a damper on the housing market's potential along with home price appreciation next year, according to First American Financial Corp.

New home construction fell more than forecast in November after surging a month earlier to a nine-year high, indicating fitful progress in residential real estate.

Confidence among homebuilders surged in December to an 11-year high on prospects the election of Donald Trump will translate into a smaller regulatory burden on the industry.

Higher rates and lower consumer confidence are expected to put a damper on existing home sales in 2017, according to the National Association of Realtors.

The inventory of starter homes is shrinking at an increasingly faster pace, leaving first-time homebuyers with fewer and more expensive options, according to Trulia.