US new home sales rose 1.8% in February, but median prices fell and builders remain cautious.

US new home sales rose 1.8% in February to an annual rate of 676,000, marking a 5.1% increase from the same period last year. The median sales price dropped 1.5% to $414,500, and the inventory hit a 16-year high of 500,000 homes. Despite a slight decline in mortgage rates, homebuilders remain cautious due to higher prices and economic uncertainties, which could limit future sales growth.