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Sharp increase in new home sales

Posted by The Aramco Group on Sun, Mar 26, 2017 @ 14:03 PM

The number of homebuyers purchasing newly constructed homes increased last month, bolstered by a pickup in construction activity and unseasonably warm weather. According to the Department of Commerce, new home sales climbed a whopping 6.1 percent in February and are 12.8 percent higher for the year.

February's figures represent the second-strongest month for new home sales since 2012 and beat expectations of a slight 1.4 percent increase set by economists surveyed by The Wall Street Journal.

While still far from meeting demand, builders are making small gains. The number of new homes for sale at the end of February rose to the highest level since July 2009. Housing starts, an indication of new homes coming down the pike, climbed near the 10-year high according to a report published by the U.S. Census Bureau.

Today, conforming no-point 30-year fixed mortgage rates averaging 4.125 percent while 15-year rates are near 3.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.