US New Home Sales jump on easing prices and lower mortgage - Wells Fargo

Data released today in the US showed that New Home Sales rose by 4.5% in March, above expectations. According to analysts at Wells Fargo, lower mortgage rates and a shift toward the construction of more modestly priced homes are boosting sales.

Key Quotes: 

“Easing home prices and lower mortgage rates spurred a 4.5% jump in new home sales during March. While existing sales were softer during the month, the housing market appears to be improving as the spring selling season gets underway.”

“Sales at lower price points continue to strengthen. During March, an estimated 50% of sales were priced below $300,000, up from around 43% of sales averaged during 2018.”

“Builder discounting and a shift in focus toward building lower priced homes in more affordable areas continue to keep price increases in check.”