Amid the historically busy homebuying season, which stretches from March to August, the median sales price of new homes fell 6.2% year-over-year in March to $387,400, according to the U.S. Census Bureau. That marks the lowest level since July 2021. The average price of new-home sales fell by 1.2% to $503,100.
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The lower prices came as mortgage rates surged. The average 30-year fixed-rate mortgage was 6% at the beginning of the month before jumping to 6.38% by month-end as rising oil prices contributed to a higher 10-year Treasury yield.
New Home Sales Climb to Fastest Pace This Year
Meanwhile, new single-family home sales came in at an annualized seasonally adjusted rate of 682,000 in March, up by 7.4% month-over-month and 3.3% year-over-year. The monthly rise marked the fastest pace of growth this year.
The data shows an uptick in housing affordability, although higher mortgage rates may begin to weigh on demand in the coming months.