February Sees Decline in New Home Sales Amid Elevated Mortgage Rates

Despite a slight decrease in sales, the market shows signs of underlying strength with a rise in housing starts.

New home sales fell 0.3% from January to 662,000 in February, despite being 5.9% higher than the same period last year.
The median sales price for a new home was $400,500 in February, marking a drop for the third consecutive month.
Mortgage rates remained elevated, with the average rate on a 30-year fixed-rate mortgage just over 6.9%.
Expectations for the Federal Reserve to cut interest rates have been delayed, with predictions now pointing towards June or July.
Housing starts increased by 10.7% from January to February, indicating a rise in new residential building construction.