The U.S. Commerce Department announced on Friday that the sales of new single-family homes increased 4.9 percent m-o-m to a seasonally adjusted annual rate of 667, 000 units in February, as lower mortgage costs helped buyers afford properties. That was the highest reading since March 2018.

Economists had forecast the sales pace of 620,000 last month. 

January’s sales pace was revised up to 636,000 units from the originally reported 607,000 units. 

According to the report, new home sales in the South, the largest area, rose 1.8 percent m-o-m in February to their highest level since July 2007. Sales in the Midwest climbed 28.3 percent m-o-m, while sales in the Northeast surged 26.9 percent m-o-m. Meanwhile, sales in the West were unchanged.

In y-o-y terms, new home sales recorded a 0.6 percent advance in February.