New-home sales in the United States fell as mortgage rates reached three-year highs during November.

The U.S. Commerce Department today reported that sales of single-family homes decreased 11.3% to a seasonally adjusted annual rate of 1.245 million. That was the largest drop since a 23.8% plunge in January 1994.

October home sales rose 11.4% to an annual rate of 1.404 million, a level revised down from an earlier estimated 1.424 million.

Economists had expected an 8.7% drop in November.

Inventories climbed to a new record, while prices tumbled.

New-home sales rose by 13.4% in the Northeast, but fell elsewhere, down 18.3% in the Midwest, 5.5% in the South and 22.1% in the West.

The average price of a home decreased to US$283,300, down from a revised US$290,600 in October. The median price sank to US$225,200 from a revised US$234,800.

Also today, The University of Michigan’s full-month report on consumer sentiment in December moved to a reading of 91.5 from 88.7 in the preliminary report and 81.6 in November.

The current-conditions index for December hit 109.1, from 106.6 in the preliminary report and 100.2 in November.

Meanwhile, the index for consumer expectations moved to 80.2 from 77.3 in the preliminary report and 69.6 in November.

Separately, the U.S. Commerce Department said durable-goods orders increased by 4.4% last month to a seasonally adjusted US$223.03 billion. It was the biggest advance since a 7.3% surge in May.

Durables rose 3.0% in October, revised down from a previously reported 3.7% advance. But a key barometer of business spending within the durables data — orders for non-defense capital goods excluding aircraft — decreased 2%, after rising 1.2% the previous month.

Transportation orders advanced 15.6% in November after increasing 11.2% in October. Commercial plane orders surged 133.8%, and orders for military aircraft sank 44.3%. Demand for motor vehicles and parts fell by 5.7% last month, after sliding 2.5% in October. Excluding transportation, orders for other goods decreased by 0.6%, after slipping 0.2% in October.