WASHINGTON, Feb 26 Reuters Sales of new U.S. singlefamily homes rose less than expected in January, likely curbed by frigid weather, but demand for new construction remains underpinned by a persistent shortage of previously owned homes.

New home sales increased 1.5 to a seasonally adjusted annual rate of 661,000 units last month, the Commerce Department39;s Census Bureau said on Monday. December39;s sales pace was revised lower to 651,000 units from the previously reported 664,000 units. Economists polled by Reuters had forecast new home sales rising to a rate of 680,000 units.

New home sales are counted at the signing of a contract, making them a leading indicator of the housing market. They, however, can be volatile on a monthtomonth basis. Sales rose 1.8 on a yearonyear basis in January.

Reporting by Lucia Mutikani; Editing by Andrea Ricci

Source Reuters