WASHINGTON — Sales of new U.S. single-family homes rose in February and March, providing some relief to homebuilders after a slow start to the year, though gains were driven largely by price cuts and incentives.
New home sales increased 7.4% in March to a seasonally adjusted annual rate of 682,000, following an 8.9% rise in February to 635,000, Mortgage Professional reported, citing government data. Sales were 3.3% higher than in March 2025, even as 30-year fixed mortgage rates remained in the mid-6% range.
Inventory showed only modest improvement, with 481,000 new homes for sale in March, representing an 8.5-month supply, down from 9.1 months in February, the report said.
Industry analysts said affordability pressures continue to shape the market.
“March new home sales data … provides a real-time look at how the housing market is adapting to a 6%-plus average mortgage rate environment,” Mark Hamrick, senior economic analyst at Bankrate, told Mortgage Professional. He added that while existing home sales remain constrained by limited inventory, the new home market is offering a “pathway for homeownership.”
Increasing Incentives
Builders have increasingly relied on incentives to attract buyers. The median price of a new home fell to $387,400 in March, down 6.2% from a year earlier, compared with $408,800 for existing homes, the report said. Hamrick attributed the shift to smaller floor plans and incentives such as mortgage rate buydowns and closing cost assistance.
Jason Madiedo, CEO of Panorama Mortgage Group, said the figures highlight ongoing affordability challenges. “Nearly all homebuilders are adjusting prices and increasing their sales incentives,” he said, according to Mortgage Professional, adding that such strategies are helping offset higher borrowing costs.
Hamrick cautioned that buyers should consider total borrowing costs, including fees, taxes and insurance, rather than focusing solely on headline mortgage rates.
