Economist Doesn’t Expect Omicron, Rate Increases to Put Much of a Dent in Booming Home Market

Don’t look for the effects of the Omicron variant or potential rate increases in 2022 to put much of a dent in the robust housing market, one economist is forecasting.

The forecast follows new federal data showing new-home sales rose 12.4% in November to 744,000 annualized units, while prior months saw a downward revision of 127,000 units.

Compared to last year, November sales were 14% lower.

“New home sales rose solidly in November, but those gains were obscured by a combined 127,000 unit downgrade to prior month sales,” said NAFCU Chief Economist and Vice President of Research Curt Long. “This is the second consecutive month that the Census Bureau has made steep downward revisions to prior months, and the trend now looks much flatter as a result.”

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