Home sales increases more than expected after facilitating mortgage rates: ‘Buyers slowly enter the market’

Previously occupied American house sales increased in February after facilitating mortgage rates and more property in the market encouraged home buyers.

Existing home sales increased 4.2% last month from January to an annual seasonal rate of 4.26 million units, the National Realtors Association said Thursday.

Sales fell 1.2% compared to February last year, ending a range of five direct annual growth.

The latest home sales to 3.92 million peace economists were waiting, according to the factset.

On the undefined basis, sales fell 5.2% in February last year, when the month included an extra day because 2024 was a first year.

Home prices increased on an annual basis for 20 years in a row. The average national sales pricing increased 3.8% in February from a year ago to $ 398,400, a high of all time for February.

“Home shoppers are slowly entering the market,” said Lawrence Yun, NAR leading economist. “Mortgage rates have not changed much, but more inventory and elections are emitting closed housing questions.”

US housing sales began to fall in 2022, when mortgage rates begin to climb the downsides of the Pandemia era. Sales of previously occupied American houses dropped last year to their lowest level at nearly 30 years.

While the average rate of a 30-year-old death briefly fell to a low 2-year-old last September, she did not stay there long, climbing just about 7% in mid-January.

Mortgage rates have largely decreased since then, sliding to an average of 6.76% by the last week of February.

On average rate of 6.65% last week, according to Freddie Mac Mortgage Buyer.

This is more than twice the record 2.65% lower than the average level reached just more than four years ago.

However, the overall drop of tariffs in recent weeks is a welcome, if modest, for buyers of possible homes while the spring season will go.

Those who can afford to buy with current home loan rates or bypass them completely by paying money also stand to take advantage of a wider selection of properties in the market.

There were 1.24 million unsold houses at the end of last month, with 5.1% from January and 17% from February last year, NAR said.

This translates into a 3.5-month supply in the current sales peace, unchanged from January and a 3-month peace at the end of February last year.

Traditionally, a supply of 5 to 6 months is considered a balanced market between buyers and sellers.

One reason the inventory of houses for sale is growing is property.

Homes usually remained in the market for 42 days last month before sale, from 41 days in January and 38 days in February last year, Nar said.