New-Home Sales Set Record in February

Sales of new homes soared to a record high in February, as the robust economy, low mortgage rates and warm weather enticed buyers. Single-family home sales rose 4.8% to a seasonally adjusted annual rate of 893,000 units last month, after a revised 5.2% gain in January, the Commerce Department said. February’s annual rate was the highest on record, surpassing the previous high of 880,000 set in March 1986. The regional breakdown showed sales in the West were up 15.7%. Economists said the report underscored tremendous momentum in the economy despite weakness in U.S. exports because of Asia’s economic ills. The median price of a new home rose 5.8% in February to $153,400, from January’s $145,000 and was 7.3% above the $143,000 median in February 1997.