Sales of newly built, single-family homes from February to March increased 7.4% to a 724,000 seasonally adjusted annual rate, according to data from the U.S. Census Bureau.
The pace of new home sales in March was up 6.0% compared with a year earlier.
A decline in mortgage rates and lean existing inventory helped increase new home sales in March even as builders and consumers contend with uncertain market conditions, the National Association of Home Builders said.
The average 30-year fixed rate mortgage was 6.84% in February but fell to 6.65% in March.
“The March new home sales data shows that demand continues to be present in the market, provided affordability conditions permit a purchase,” National Association of Home Builders Chairman Buddy Hughes said in a statement. “An increase in economic certainty would be a big boost to future sales conditions.”
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