As more new homes hit the market heading into peak buying season, more people are snatching them up. According to U.S. Census Bureau and Department of Housing and Urban Development data released Wednesday, sales of newly constructed single-family homes increased 7.4% compared with a month earlier and are 6% higher than a year ago.

What You Need To Know

  • Sales of newly constructed single-family homes increased 7.4% compared with a month earlier and are 6% higher than a year ago, according to the U.S. Census Bureau and Department of Housing and Urban Development

  • Prices are also lower as builders focus on smaller-sized homes to attract buyers

  • The median sales price of a newly constructed home in March was $403,600 — 2% lower than in February, when the median sales price was $411,500, and 7.5% lower than a year ago, when builders preferred larger homes and the median price was $436,400

  • The current rate for a 30-year fixed mortgage is 6.98% — up from 6.79% a month ago, according to Mortgage News Daily

Prices are also lower than they were a year ago as builders focus on smaller-sized homes to attract buyers. The median sales price of a newly constructed home in March was $403,600 — 2% lower than in February, when the median sales price was $411,500, and 7.5% lower than a year ago, when builders preferred larger homes and the median price was $436,400.

Existing home sales have, however, cooled. Pending home sales in March fell 5.2% in major metro areas compared with a year earlier, according to Realtor.com. The real estate listings website attributed the lackluster sales to affordability issues, high mortgage rates and buyers’ uncertainty about the economy.

"Lower mortgage rates will be needed to get homeowners to move,” National Association of Realtors Chief Economist Lawrence Yun said in a statement.

The current rate for a 30-year fixed mortgage is 6.98% — up from 6.79% a month ago, according to Mortgage News Daily.