• There were 640,000 new home sales nationwide in February (SAAR), up 1.1% from January and down 19.0% from February 2022, according to the U.S. Census Bureau.
• The median sales price of new houses sold in February was $438,200
• The seasonally-adjusted estimate of new houses for sale at the end of February was 436,000, a supply of 8.2 months at the current sales rate.

Mortgage rates are steering both supply and demand in today’s costly environment. When mortgage rates fall, mortgage applications increase and home sales increase. A four-month long decrease in mortgage rates pulled many buyers back from the sidelines to take advantage of the brief improvement in affordability –  with rates dipping and home values falling across parts of the country. However, potential sellers have been slow to list – many wanting to hang onto their lower-rate loan. With fewer homeowners choosing to list their homes this spring, new home sales are continuing to increase. There were 436,000 new houses for sale last month – the lowest since April – suggesting that builders still likely face challenges in completing units while buyer demand has also ticked up.