New home sales rose in March despite the housing market feeling the effects of higher mortgage rates, which have recently inched even higher.
New home sales increased 8.8% from February to 693,000, according to a Tuesday report from the Census Bureau. The number of new home sales is 8.3% higher than it was in March of last year, owing in part to dampened inventory of existing homes.
The median sales price for a new home was $430,700 in March.
The housing market is in a complicated spot right now. During the worst of the pandemic, the Federal Reserve cut its interest rate target to near-zero and mortgage rates plunged to ultra-low levels. At one point in early 2021, people were locking in 2.5% mortgages — the lowest level in post-war modern history.
The low rates prompted a rash of homebuying and investment, generating a notable boost in home construction. But then, the dynamic began changing
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