COSTELLO: According to a new report by the Commerce Department, new home sales slipped last month. They fell 7 percent. The good news is experts predict market momentum will pick back up and if you take a look at the numbers over the past year, new home sales are actually up quite a bit. So to explain this all, let's bring in CNN business correspondent, Zain Asher. Good morning, Zain.</s>ASHER: Hi, Carol. Yes, so if you look at the whole of 2013, new home sales actually reached the highest level in five years, however when you take the December numbers just by themselves, they actually dropped 7 percent, partly because of the cold weather. Overall, there are a couple of factors happening in the housing market right now that are affecting buyers. Prices are up. Inventory is tight. Mortgage rates are increasing. Let me show you what home sales, where they are expected to go this year. Home prices, where they are expected to go, so Oakland, California, expects to increase by 9.3 percent, Ft. Worth, Texas, expected to go up by 8.9 percent. Mortgage rates, after seeing historic lows back in May of last year, possibly could reach 5 percent this year. For some context, home buyers do need to make sure if you are looking to lock in a loan, go for it right now. Partly because banks, they need to drum up business. They are going to try and lure potential home buyers any way they can. Take a listen to what one economist had to say.</s>STAN HUMPHRIES, ZILLOW CHIEF ECONOMIST: As mortgage rates rise, banks have to get more creative about getting new business. They tend to get more creative by lowering the amount of down payment they require or accepting a lower FICO score.</s>ASHER: All right, so a FICO score is your credit score to lock in the best possible rate. You probably need something in the range of 740 -- Carol.</s>COSTELLO: Zain Asher reporting live this morning. Thanks so much. Still to come in the NEWSROOM, his letter to the "Wall Street Journal" sparking a firestorm. Why the Silicon Valley billionaire says a tax on rich people like him are just like Nazi attacks on Jews.
New Home Sales Drop 7 Percent In December