New Home Sales Figures in the US Drop in February

New home sales
New home sales

New home sales in the US fell sharply in February, according to government data released Monday. Meanwhile, sales levels in January were revised higher.

New home sales were at an annual rate of 662,000 units last month, down 0.3 percent from a revised figure of 664,000 in January, seasonally adjusted, the Commerce Department said. The median sale price of new properties was $400,500, lower than the previous month.

The decline occurred while mortgage interest rates remain much higher than in recent years. But this situation has also discouraged homeowners from entering the market to sell their real estate, with previously lower interest rates. As a result, the supply of housing is reduced.

Compared to last year, sales of new single house types rose 5.9 last February. But analysts warn that new home sales figures could be volatile.

As of March 21, fixed-rate loans for popular 30-year mortgages in the US averaged 6.87 percent according to Freddie Mac. That’s a much higher rate than in March 2021, when interest rates were 3.0 to 3.2 percent.