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(AP Photo/Chuck Burton, File) More WASHINGTON (AP) -- Americans responded to higher mortgage rates by snapping up new homes in February at the fastest pace since July. New-home sales rose 6.1 percent month-over-month to a seasonally adjusted annual rate of 592,000, the Commerce Department said Thursday. That sales pace is nearly 13 percent higher than February of last year, a positive sign for the housing market that demand is robust at the start of the spring home-buying season. Healthy job growth and a recovering economy have pushed up interest in new homes, while the prospect of rising mortgage rates since the November presidential election may have pulled some sales forward. An exceptionally warm February also likely helped fuel sales. "Sales were likely boosted by the much warmer-than-usual weather last month, which made visiting new-home construction sites less miserable than usual in February," said Ian Shepherdson, chief economist at Pantheon Macroeconomics. Builders have ramped up the construction of new homes, which helps meet strong demand and boosts sales. That could provide a slight lift to the broader economy through construction jobs and the consumer spending linked to home purchases. But demand for homes is still outpacing the construction gains. There were 266,000 new homes for sale last month, the most since July 2009 a month after the recession ended and up nearly 10 percent from a year earlier. The median sales price in February of a new home was $296,200, a decline that might reflect that much of the sales last month were in the cheaper Southern markets.
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Travellers have been fortunate in recent decades to fly inexpensively, but one deal leaves Business Insider wondering whether the fare would cover the plane fuel. Bargain flight finding service Scott's Cheap Flights reported today that AirAsia is selling return tickets from three Australian cities to the Indian city of Tiruchirappalli for as low as $252. All flights are via the airline's hub of Kuala Lumpur. Business Insider Inc The dates of the super cheap fares are scattered throughout April and May. Business Insider searched some dates and found a round trip ticket out of Sydney for $267 for departure on April 24 and return on May 6. According to Scott's, Melbourne fares are going for as low as $263 and exit out of Gold Coast is a bargain $252. "These fares could disappear anytime, even within a few hours," said the notice to Scott's Cheap Flights subscribers. Potential travellers are warned that, as a budget carrier, meals and check-in luggage do cost extra on AirAsia. Tiruchirappalli in the Tamil Nadu region on India southern tip, 322km south of Chennai.
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