US Home Sales Exceed February Market Expectations

Sales of previously occupied U.S. homes rose by 4.2% in February to a seasonally adjusted annual rate of 4.26 million units, exceeding market expectations of 3.92 million units. This increase is attributed to easing mortgage rates and an increase in market inventory, which encouraged more home shoppers, as noted by the National Association of Realtors. Despite this monthly gain, sales were down 1.2% compared to February of the previous year, marking the end of a five-year streak of annual increases. The national median home sales price rose 3.8% year-over-year to $398,400, setting a record for February. Lawrence Yun, NAR’s chief economist, highlighted that while mortgage rates remain higher than pandemic-era lows, the improved inventory is helping to release pent-up demand.