The Commerce Department reported that sales of durable goods spiked 3.2 percent in November, well above the two percent economists had predicted. A measure of planned business spending for capital goods marked its biggest gain in nearly a year in November, which indicates growth into next year. While sales of new homes fell slightly in Nov., likely due to rising mortgage rates, they hit a five year high in October, as the housing market continues to boost the economic recovery. Although applications for residential mortgages dropped for a second week in a row, homes sales are expected to increase next year along with employment, which will in turn boost household formation activity. MHProNews has learned median home prices rose over ten percent from a year ago to $270,900. “From consumer spending to employment and trade, the foundations appear to be in place for sustained and strong economic growth in 2014,” according to foxbusiness.com.
