New home sales fell in February amidst a number of challenges facing builders and home shoppers. Though February’s new sales were below recent highs, builders are still selling homes at a higher seasonally adjusted rate than they did at any point between 2008 and 2019. This transaction volume is taking place against a backdrop of continuous supply chain and labor disruptions. In the meantime, buyers are facing a housing market that looks to be as competitive as ever. Inventory is at a record low and homes are selling within a week of being listed – more than two weeks faster than they did in February 2020. Compounding the challenges that buyers are facing in this historically competitive market is the fact that monthly mortgage payments are rising at their fastest pace in decades, as home values and mortgage rates have each experienced sharp increases to begin the year. Buyers are going to be looking at all corners of the market for listings in the months ahead, and with permit activity remaining strong, builders can seize the moment and build for the next generation of homeowners.