By Jeannine Aversa
The Associated Press

WASHINGTON - Motivated by some of the lowest mortgage rates seen in decades, buyerspropelled new-home sales in November to the highest monthly level on record. New-home sales for all of 2002 are on track for their best-ever year.

Sales of new single-family homes clocked in at a seasonally adjusted annual rate of 1.07 million in November, representing a 5.7 percent jump from October, the Commerce Department reported Friday.

The housing market performed remarkably well during last year's recession and remains one of the bright spots of this year's economic recovery.

"Mortgage rates have fallen like a rock this year, so financing conditions are good," said Stanley Duobinis, economist with the National Association of Home Builders. New-home sales will hit an all-time high this year, surpassing the record posted in 2001, he said.

In November, the average interest rate on a 30-year fixed-rate mortgage was 6.07 percent.

Low mortgage rates this year have been feeding a flurry of refinancing. The extra monthly cash that consumers are saving is helping support consumer spending.

Another factor motivating home buyers is solid appreciation in housing values. The average price of a new home in November was $218,900, a 5.8 percent increase from the average price for the November 2001.