Sales of new U.S. homes unexpectedly rose in February after a downward revision to the prior month, suggesting the housing market is beginning to stabilize after a tumultuous year.
Purchases of new single-family homes increased 1.1% to an annualized 640,000 pace after a 633,000 rate in January, government data showed Thursday. The median estimate in a Bloomberg survey of economists called for a 650,000 pace.
The latest data — which showed last month’s pace was the strongest since August — suggest the housing market may finally be gaining its footing after last year’s rapid rise in mortgage rates. That said, affordability remains a key concern for buyers, and the limited supply of homes on the market has also restrained sales.
