New home sales tick back in November

People in the U.S. bought new homes at a slightly slower rate in November, but the housing recovery still appears to be gaining steam.

The Commerce Department said Tuesday that U.S. consumers are now on pace to buy a seasonally adjusted 464,000 units this year.

{mosads}That’s down 2.1 percent from October’s 474,000, the highest point since July 2008 — a couple of months before the fiscal crisis broke out.

Still, the National Association of Home Builders, a leading industry group, said the November numbers show consumers are getting more and more confident about the housing market.

“Historically low interest rates, affordable home prices and a healing economy are bringing buyers back into the marketplace,” said David Crowe, the chief economist for the organization.

But Rick Judson, the group’s chairman, added that it was a guarded optimism among potential buyers.

The 464,000 figure remains well below the 700,000 that is considered the benchmark for a healthy market. Potential home buyers have seen more tempered mortgage rates in recent months, after an increase over the summer.

But the Federal Reserve also announced this month that it would start restraining its efforts to stimulate the economy, adding another wrinkle for the housing market. Interest rates started to rise this year, after the Fed first hinted it would start reducing its bond-buying program.

“The very low supply of new homes on the market and tight credit conditions for home buyers show that builders are still cautious about getting ahead of themselves,” Judson said.

New home sales were strongest in the West and the Northeast, the home builders group said. Sales dropped, meanwhile, in both the Midwest and the South.

The 464,000 figure was a bit above the median forecast of analysts surveyed by Bloomberg.