New home sales rise 7.4% in March as median price hits near 5-year low at $387,400

New home sales in the U.S. increased by 7.4% in March 2026 to an annual rate of 682,000, surpassing forecasts and marking a 3.3% rise from last year. The median price of new homes dropped to $387,400, the lowest in nearly five years, reflecting a 5.3% monthly and 6.2% annual decline, with inflation-adjusted prices at their lowest since 2014. Despite a high 30-year fixed mortgage rate of 6.18%, which limits homeowner turnover, the market shows signs of renewed demand. This trend suggests potential opportunities for buyers as prices soften amid steady sales growth.