WASHINGTON—Sales of new U.S. single-family homes unexpectedly fell in February amid rising mortgage rates and higher house prices, which are squeezing out some first-time buyers from the market.
Despite the second straight monthly decline reported by the Commerce Department on Wednesday, sales remained above their pre-pandemic level. Economists saw reduced affordability curbing activity in the near-term, but expected the new housing market to plod along this year given pent-up demand, a record low inventory of previously owned homes and strong wage gains.
