US Existing Home Sales Up 1.7% in February

Sales of existing homes in the United States rose in February, rebounding from a steep drop the prior month as lower mortgage rates and a slight uptick in available properties drew more buyers into the market ahead of the spring buying season.

The National Association of Realtors reported Tuesday that existing home sales increased 1.7 percent from January to a seasonally adjusted annual rate of 4.09 million units. The figure exceeded economists' expectations of around 3.84 million to 3.88 million. Compared with February 2023, sales declined 1.4 percent, with declines in every region except the South. Single-family home sales drove the monthly gain, rising 2.5 percent, while condominium sales fell.

The improvement came as housing affordability reached its best level in nearly four years. The NAR's Housing Affordability Index climbed to 117.6, the highest since March 2022, marking the eighth consecutive month of gains. This followed a drop in average 30-year mortgage rates to 6.05 percent, down a full percentage point from a year earlier. Wage growth also continued to outpace home price increases by nearly four percentage points, enhancing buyers' purchasing power.