US Housing Market: Mixed Signals as Sales Rise and Prices Fall
New home sales rose for the third consecutive month in February, up 1.1% from January, as mortgage rates eased off their highs and buyers looked to new construction amid historically low inventory of existing homes for sale. However, sales were down 19% from a year ago, and prices of new homes rose from January. Demographic drivers, such as millennials experiencing a baby boom and high-earning households looking to upsize, continue to push for a demand for more new home sales.