| Consensus | Consensus Range | Actual | Previous | |
| Annual Rate | 668K | 618K to 700K | 682K | 636K |
Highlights
Sales of new single-family homes are up for a second month in a row as potential homebuyers took advantage of lower mortgage rates and moderation in prices to sign contracts. The Freddie Mac average rate for a 30-year fixed rate mortgage was 6.11 percent in January and February and inched up to 6.18 percent in March. Mortgage rates are at the lowest since September 2022. Rates are on the rise again and will hamper upward momentum during the spring buying season.
Sales of new single-family homes rise 7.4 percent in March and 8.9 percent in February to 682,000 and 635,000 units, respectively. The March increase is above the consensus of 668,000 in the Econoday survey of forecasters. Sales are up 3.3 percent from March 2025.
Sales in March are uneven across regions. Big gains of 80.0 percent in the Northeast and 11.1 percent in in the South may in part reflect a rebound from winter weather that discouraged homebuying activity. Sales in the Midwest are down 5.0 percent and off 3.5 percent in the West, although the total units sold in those regions are not much changed in the past three months.
The supply of homes available for sales are down to 8.5 months in March after 9.1 in February and 9.8 in January. Homebuilders have cutback on starts of new homes and are working down existing inventories. The median price of a new single-family home is down 5.3 percent to $387,400 in March and down 6.2 percent from $412,900 from a year ago. This may be in part from builders opting to construct smaller and more affordable units. However, it is against the normal trend for prices to rise in the first half of the year.
Only 8 percent of the units sold in March were for units not yet started. Some of this may reflect builders holding back on initiating new projects. Units under construction accounted for 36 percent of sales and units completed are 56 percent.
Market Consensus Before Announcement
Home sales seen recovering to a 668,000 rate in March, and to 610,000 in February from a surprisingly low 587,000 in January.
* Originally scheduled for 4/23/2026
Definition
New home sales measure the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing market trends and, in turn, economic momentum and consumer purchases of furniture and appliances.
Description
This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as new home sales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio. Each time the construction of a new home begins, it translates to more construction jobs, and income which will be pumped back into the economy. Once the home is sold, it generates revenues for the home builder and the realtor. It brings a myriad of consumption opportunities for the buyer. Refrigerators, washers, dryers and furniture are just a few items new home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, new home sales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the new home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.
