The U.S. Commerce Department announced on Tuesday that the sales of new single-family homes increased 4.5 percent m-o-m to a seasonally adjusted annual rate of 692, 000 units in March, as lower mortgage costs helped buyers afford properties. That was the highest reading since November 2017.

Economists had forecast the sales pace of 650,000 last month.

February’s sales pace was revised down to 662,000 units from the originally reported 667,000 units.

According to the report, new home sales in the South, the largest area, rose 3.6 percent m-o-m in March to their highest level since July 2007. Sales in the Midwest climbed 17.6 percent m-o-m, while sales in the West jumped 6.7 percent m-o-m. Meanwhile, sales in the Northeast declined 22.2 percent m-o-m.

In y-o-y terms, new home sales recorded a 3.0 percent advance in March.