Rise in U.S. Single-Family Home Prices

Sales of new single-family homes in the U.S. reached a six-month high in February, indicating that the housing market may be approaching stabilization after being affected by rising mortgage rates. The Commerce Department reported on Thursday that new home sales rose by 1.1% to a seasonally adjusted annual rate of 640,000 units last month, the highest level since August. The sales pace for January was revised down to 622,000 units from a previously recorded 670,000 units. New home sales are counted when the contract is signed, making them a key indicator of the housing market. The average price of a new home in February was $438,200, an increase of 2.5% from last year. There were 436,000 new homes on the market at the end of last month, down from 439,000 in January.