Why US new home sales exceeded economists’ predictions for March

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    Sales of new homes in the U.S. increased last month after mortgage rates dipped, Bloomberg reports. 

    At the start of the spring selling season, purchases of new single-family homes increased 7.4% in March, mostly driven by a surge in the South, according to government data released Wednesday. Sales exceeded all estimates from a Bloomberg survey of economists.

    Sales in the South rose to the fastest pace in nearly four years. Sales in the Midwest also climbed, while they fell in the West and Northeast.

    Inventory also grew, with the supply for new homes for sale at any stage of construction inching to 503,000 in March, the highest since 2007. Completed homes for sale also increased to levels last seen in 2009. 

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