US new-home sales increased 4.9 per cent in February
WASHINGTON — Sales of new U.S. homes climbed 4.9 per cent in February, an indication that falling mortgage rates have given a boost to demand from buyers.
The Commerce Department said Friday that new homes sold at a seasonally adjusted annual rate of 667,000 in February, an increase from an upwardly revised 636,000 in January. New-home sales are running 2.8 per cent higher through the first two months of 2019 than during the same period last year.
This initial rebound in sales after a weak end to 2018 bodes well for the traditional Spring homebuying season that began this month. Recent gains suggest that the combination of a solid job market and rising wages has encouraged more people to purchase both new and existing homes, especially as lower mortgage rates have made their money go further.
“This trend supports the fact that lower mortgage rates have started to entice buyers this Spring and foreshadows a potential strengthening of existing-home sales in the months to come,” said Danielle Hale, chief economist at Realtor.com.