On the heels of a disappointing existing home sales report, the underlying fundamental strengths of the housing market came through clearly in March’s new home sales figures. A strong labor market and sharp mortgage rate declines last month clearly drove buyers into the hands of builders — and importantly, buyers at a variety of price points. Sales in the critical $200,000-$299,000 segment grew from just about a quarter of all sales a year ago (28%) to more than a third in March (34%). Sales volumes through Q1 are higher than at this point last year — and the start of 2018 was strong in itself — and the bump is happening despite still-rising costs of land and lumber. The typical sales price for a new home remains higher than the national median for all homes, but it appears builders are finally proving able to meet buyers at more affordable segments — critical to continued strength.