New home sales jumped 9.6% in March in sign of market stabilizing

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Sales of new homes increased more than expected from February to March, a sign that buyers might be reentering the market amid somewhat lower mortgage rates.

New home sales in March rose 9.6% last month to a seasonally adjusted annual rate of 683,000, according to a report Tuesday from the Census Bureau. The reading follows March's decline in mortgage rates, which could be spurring more home purchases. Nevertheless, sales were 3.4% lower than in March 2022.As of Tuesday, the average rate on a 30-year fixed-rate mortgage was 6.39%, down from a recent peak of over 7% in October and into November, according to Freddie Mac.

The Fed once again hiked interest rates last month by a modest quarter of a percentage point, even despite the uncertainty from the collapses of Silicon Valley Bank and Signature Bank. That means more pressure on mortgage rates this year. Investors now assign about an 84% chance that the Fed will raise rates yet again, according to CME Group’s FedWatch tool, which calculates the probability using futures contract prices for rates in the short-term market targeted by the Fed.

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New home sales rise for the fourth month in a row | CNN BusinessNew home sales rose in March, climbing for the fourth month in a row as mortgage rates eased and buyers looked to new construction as an alternative to the tight inventory of existing homes for sale.
Fonte: CNN - 🏆 4. / 95 Consulte Mais informação »