New home sales dipped just 0.3% in February to an adjusted rate of 662,000, according to the U.S. Census Bureau.
However, compared with February 2023, new home sales plunged 16.2%.
A “slight uptick” in mortgage rates held new home sales back in February, according to the National Association of Home Builders.
“While new home sales remained flat in February, our latest home builder surveys show increased levels of confidence driven by the ongoing lean levels of existing home inventory,” stated NAHB Chairman Carl Harris. “As interest rates subside over the course of 2024, additional home buyers will be priced into the market and new construction will be needed to meet this demand.”
Regionally, compared with January, new home sales dropped 31.5% in the Northeast and 2.4% in the Midwest, rising 3.7% and 2.3% in the South and West, respectively.
The full new home sales report can be found here.
