New-Home Sales Rebound in February, Exceeding Estimates
Sales of new U.S. homes rebounded to the best pace in almost a year and exceeded estimates in February, led by the Midwest, as lower mortgage costs helped buyers afford properties.
Single-family home sales rose from the prior month to a 667,000 annualized pace, according to a government report March 29 that was delayed by the government shutdown. That compares with January’s upwardly revised figure of 636,000. The median sales price fell 3.6% from a year earlier to $315,300.
The surprisingly strong gain to the best level since March is further evidence that transaction levels are stabilizing after a recent dip, joining a separate report showing the biggest gain for existing home sales since 2015. Mortgage rates that started to ease late last year and tax cuts are helping lure buyers.
Meanwhile, other housing indicators, including starts and prices, have been cooling. New-home purchases are seen as a timelier barometer of housing than those of previously owned properties, as they’re calculated when contracts are signed rather than when they close.
