If the pace of new home sales is any indicator, the housing market is about to pick up steam. New numbers from the U.S. Census Bureau and the Department of Housing and Urban Development show sales of new single-family homes rose 9.6 percent in March from one month earlier. The improvement pushed sales to their highest level in a year and far exceeded economists' expectations. In fact, forecasts had new home sales falling from February's pace.
So why did sales spike? Well, there are a few reasons behind surging sales. One is mortgage rates, which were mostly lower in March. Another is the lack of existing homes for sale, which has caused more home buyers to look for newly built options. Combine that with still-high levels of buyer demand and the start of the spring home sales season, and the nearly 10 percent jump isn't as surprising.
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