In February, existing home sales in the U.S. rose 4.2% from January to an annual rate of 4.26 million, attributed to decreasing mortgage rates and an increase in available properties. This rise came after a decline in sales compared to the previous year, which marked the end of five successive annual gains. Lawrence Yun, an economist from the National Association of Realtors, noted the homebuyer market is gradually improving due to more choices, even as home prices reached a peak at $398,400, reflecting a 3.8% annual increase.
"Home buyers are slowly entering the market," said Lawrence Yun, NAR's chief economist. "Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand."
The latest home sales topped the 3.92 million pace economists were expecting, according to FactSet.
On an unadjusted basis, sales fell 5.2% in February last year, when the month included an extra day because 2024 was a leap year.
While the average rate on a 30-year mortgage briefly fell to a 2-year low last September, it didn't stay there long, climbing to just above 7% by mid-January.
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