New home sales surged almost 9 percent in March, according to new numbers from the U.S. Census Bureau and the Department of Housing and Urban Development. The improvement exceeded economists' expectations and pushed new home sales 8.3 percent higher than year-before levels.
The gains are mostly due to the continuing lack of existing homes available for sale. Inventory levels have been improving recently but remain lower than normal. That's helped drive home buyers to consider new options, which has kept the new home market buzzing at a time when existing home sales have been slow.
Still, mortgage rates have risen recently, which could slow the momentum in upcoming reports. In March, though, every region of the country saw increases, including a 27.8 percent spike in the Northeast. The Midwest, South, and West, saw gains between five and nine percent month-over-month.
[Source: Reuters]
