New -home sales fell in spite of incomes and spending levels rising. In November, the statistics show that the sales of new homes dropped by 11.3%.

The consumer spending hiked at 0.5% and personal income surged as well, which rose 0.4 %, but a fall was recorded in new houses sale.

"It is encouraging that income appears to be growing at a steady pace", said Paul Dales, a U. S. economist at Capital Economics. But the current rate of income growth "will not be enough to drive a significant recovery in consumption at the same time that debt needs to be paid down", he said.

The dollar also fell by 0.5 percent.

The median sales price of new houses was $217,400 in November which is up from that of October which was $209,400 but down modestly from a year earlier, a report said. The median is the point at which half the homes sold for more and half for less.

If sales were to continue at the current pace, there would be a 7.9 month supply of new homes for sale, up from 7.2 months in October but down from the year's high of 12.4 months in January.