Investing.com - Sales of new U.S. single-family homes jumped to nearly a one-year high in February, even as other housing market figures showed volatility.
The Commerce Department said on Friday that new home sales rose 4.9% to a seasonally adjusted annual rate of 667,000 units last month from a revised 636,000 in January.
Economists had forecast new home sales hitting a pace 620,000 units last month. New home sales, which are drawn from permits, are volatile from month to month.
The housing sector has shown mixed signals and volatility in recent months. Housing starts tumbled in February after a surge at the beginning of the year, while homebuilders’ sentiment held steady in March after having hit a three-year low at the start of 2019.
Pending homes sales unexpectedly declined in February, also following a surge in January.
Analysts expect the recent promise from the Federal Reserve to be patient with rate hikes will put a cap on mortgage rates, coupled with a solid labor market and increasing incomes to improve affordability for would-be homebuyers.
"The expectation is no change at all in the current monetary policy, which will help mortgage rates stay at attractive levels," Larry Yun, chief economist at the National Association of Realtors, said.