Americans pulled back sharply from buying new homes in December, but sales for all of 2016 were the highest since 2007.

The Commerce Department said Thursday that new-home sales last month fell 10.4 percent to a seasonally adjusted annual rate 536,000. But sales totaled 563,000 in 2016, up 12.2 percent over the past year.

Much of the sales growth during 2016 came from low mortgage rates and a steadily improving job market. But 2017 begins with some of that momentum possibly stalling as mortgage rates have risen since the November presidential election, worsening affordability and potentially curbing sales growth as more buyers cope with affordability issues.

“Sales suffered in December as a jump in mortgage rates clearly had a chilling effect on activity,” said Joshua Shapiro, chief U.S. economist at the consultancy MFR. Still, Shapiro expects that the healthy jobs market will support continued home sales.

In the wake of Donald Trump's presidential victory, financial markets are expecting faster economic growth from tax cuts and rising inflation. Interest rates for both the 10-year Treasury note and mortgages have risen as a result.

The low rates and a shortage of inventory have also boosted prices.

Self-driving shuttle goes on tour

A shuttle bus that drove itself — along with human passengers — through a course in a parking lot near Atlanta is embarking on a tour that will include stops in Texas and California.

The Alliance for Transportation Innovation offered rides in the 12-person bus Thursday in Austell, Ga.

A key goal of Thursday's demonstration and future ones is to give people a chance to see a driverless vehicle up-close and ride in one, officials said.

Public acceptance is one of the main challenges to getting the vehicles into use on city streets and highways, said Paul Brubaker, president and CEO of the Washington, D.C.-based Alliance for Transportation Innovation.

Puerto Rico passes labor law

Puerto Rico's new governor has signed a much-debated labor bill that targets the private sector and aims to stimulate the island's economy amid concerns that it infringes on workers' rights.

The law approved on Thursday implements flexible scheduling, cuts the amount of a mandatory Christmas bonus, reduces vacation days and overtime pay from double time to time-and-a-half, and implements a nine-month probation period for most workers.

Opponents warn the law will step up the exodus of Puerto Rican professionals to the U.S. mainland, while supporters believe it will stimulate investment and create jobs by lowering the cost of doing business.