New Home Sales Surge 7.4% in March to 724,000

New home sales in the U.S. surged 7.4% in March to a seasonally adjusted annual rate of 724,000, surpassing forecasts and marking a six-month high. This increase, driven in part by a dip in mortgage rates and sales incentives, was especially strong in the South and reflects a 6.0% rise compared to the same month last year. While the robust sales exceeded expectations and are seen as a positive sign for both the housing market and the U.S. dollar, some analysts caution that a recent rebound in mortgage rates could limit the momentum in coming months. Inventory at the end of March stood at 503,000 new homes for sale, representing 8.3 months of supply. Median new home prices fell both month-over-month and year-over-year, indicating some pricing pressure despite the sales uptick. Overall, the data signals resilience in the housing sector, although future gains may depend on the trajectory of mortgage rates and buyer sentiment.