New Home Sales Surge 8.8% in March, Reaching a Six-Month High

The increase in new home sales comes despite higher mortgage rates, with a significant rise in available new homes and prices.

Sales of new homes in the U.S. increased by 8.8% in March, reaching a seasonally adjusted annual rate of 693,000, the highest since last September.
The median sales price of new homes rose to $430,700, reflecting ongoing demand amid tighter inventory of existing homes.
Available new homes for sale increased to 477,000, marking an 8.3 months' supply at the current sales rate.
Despite higher borrowing costs with mortgage rates around 7%, incentives offered by builders, such as mortgage rate buydowns, have bolstered sales.
Economists anticipate the Federal Reserve may cut rates later this year, which could influence future housing market dynamics.