P.M. BRIEFING : New Home Sales Rise 9.6% in Nov., Biggest Gain in 4 Months

Sales of new homes surged 9.6% in November, the steepest gain in four months, the government said today in a report showing sharp gains in every region of the nation except the South.

The Commerce Department said new single-family homes were sold at a seasonally adjusted annual rate of 710,000 units in November after edging up a revised 0.9% in October. Sales in October originally were reported to be off 0.5%.

The November gain was the highest since a 14.1% advance last July.

Analysts have been looking for a slight improvement in new home sales as mortgage interest rates decline. Fixed-rate mortgages averaged 9.74% at the end of November, according to a survey by the Federal Home Loan Mortgage Corp.

New home sales ran up a 29.9% gain in the West, the highest rate since advancing 47.7% in November, 1981. The Mitsubishi Bank’s Weekly Economic Indicator Report suggested that the November figure would be partially due to a rebound from abnormally weak sales following the Oct. 10 San Francisco Bay Area earthquake.

Sales in the Midwest registered a 23.6% gain, while the Northeast posted an 8.5% increase. Sales in the South, however, fell 7.6%.