February U.S. Home Sales Fall

Sales of newly built homes in the U.S. fell more than expected in February, as builders faced higher costs and persistent delays and, consequently, raised their prices, says the U.S. Census Bureau. Taken together with rising mortgage rates during the month, affordability for buyers took a major hit. Sales dropped 18 per cent monthly to the slowest pace since last May. While buyer traffic remains strong, home building activity is being delayed due to material shortages which is forcing builders and buyers to grapple with rising affordability issues.