New Home Sales Jump in March Despite Economic Uncertainty
In March, U.S. new single-family home sales surged by 7.4%, hitting an annual pace of 724,000 units—the highest since September 2024. This jump came as buyers rushed to lock in lower mortgage rates, which dipped to 6.65% from 6.76% in February, according to Freddie Mac. However, rates have since crept up, touching 6.83% last week.
While this rebound signals a temporary boost for the housing market, economists remain cautious. Ongoing concerns about inflation, rising construction costs, and economic headwinds tied to President Trump’s shifting tariff policies may slow momentum in the coming months. Recent tariffs have added nearly $11,000 to the cost of building a new home, according to the National Association of Homebuilders.
Regionally, the South and Midwest saw the strongest sales increases, while the Northeast and West posted declines. The median new home price also dropped 7.5% year-over-year to $403,600, with most sales falling under the $499,999 mark.
Inventory rose slightly to 503,000 homes—the highest since 2007—though supply has become a bit tighter, with an 8.3-month backlog compared to 8.9 months in February.
Bottom line: Buyers are still active, but volatility in rates and costs could impact the market’s stability moving forward.
