Home buildings go up as mortgage rates drop

(CNN/KYMA, KECY) – New home sales rose in February, climbing for the third month in a row as mortgage rates eased off their highs of the past year.

Buyers are now looking to new construction amid historically low inventory of existing homes for sale.

According to joint report from the Department of Housing and Urban Development and the Census Bureau, it found that sales of newly constructed homes were up a little more than 1% in February from January.

But new home sales fell 19% from a year ago.

February's month-over-month gain is further evidence that the housing market may be stabilizing.

Mortgage rates dropped again this week for the second week in a row amid lingering concerns about bank failures and uncertainty in the financial markets.

Fed chair Jerome Powell said this week that recent banking sector instability is likely to lead to tighter lending requirements, which could cool down inflation.