New home sales surged in March despite elevated mortgage rates

Sales of newly built single-family homes in the United States surged in March despite elevated mortgage rates. Data from the government showed that new home sales jumped 8.8% last month, surpassing economists’ projections and marking the largest monthly increase since December 2022. The Northeast region saw the most significant increase, with sales rising by 27.8% from February. In contrast, sales of existing homes dropped 4.3% in March, according to the National Association of Realtors. Economists expect the US housing market to remain challenging due to high mortgage rates and a persistent housing shortage.