New Home Sales at 7-Year High

According to a new report by the U.S. Department of Housing and Urban Development and the Census Bureau, new home sales rose 7.8 percent in February month to month, reaching a seven-year high.

A sizable portion of this sales activity consists of existing home owners who are trading up to new construction while taking advantage of continuing low mortgage rates.

The inventory of new homes is at a 4.7-month supply at the current sales pace. Most economists consider a six-month supply a healthy pace for the sector.

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