Story perspectives
Pandemic Boosted New Home Sales, But Rates Cool Market
10/23/2025
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Story summary
- The COVID-19 pandemic, aided by the Federal Reserve's near-zero interest rate policy in March 2020, boosted U.S. housing demand.
- New home sales surged, peaking at over 160% of 2019 levels.
- Aggressive rate hikes starting in 2022 cooled the market, causing existing home sales to fall below pre-pandemic levels.
- Meanwhile, new home sales remained relatively stable as buyers pursued new construction amid a shortage of resale inventory.
