Washington, Jan. 28--New-home sales dropped for a second straight month in December, but also turned in a strong showing for all of 2003.
A separate report from the Commerce Department Wednesday showed new-home sales fell 5.1% to a seasonally adjusted annual rate of 1.06 million units. Economists had been expecting sales to rise 0.8%. But October and November sales were revised upward.
The inventory of homes on the market climbed to a 4.3-month supply from a four-month supply in November. Average home prices eased to $261,100 from $268,700. An estimated 71,000 homes were actually sold last month, based on figures that are not seasonally adjusted.
Later Wednesday, the Federal Reserve is expected to issue a decision on interest rates. Most economists expect the central bank will leave its target for the federal-funds rate at a 45-year low of 1%. What they will be keeping an eye out for is what policy makers say in the statement accompanying the decision to see if it offers any insight on the Fed's assessment of the economy or future plans for raising rates.
