Existing home sales unexpectedly increase
U.S. existing home sales unexpectedly rose in February, driven by lower mortgage rates late last year, suggesting pent-up demand is unlocking.
Lower mortgage rates in late 2025 appear to be a key factor in the February sales increase. The National Association of Realtors (NAR) reported the increase, noting the median existing-home price rose 5.7% from a year ago to $388,800. The increase suggests that potential homebuyers who were previously sidelined by high rates are now re-entering the market. However, inventory remains tight, which could limit further sales gains in the coming months. Regionally, sales performance was mixed, with the Northeast experiencing a notable decline while other regions saw increases or remained stable. This divergence highlights the varying impacts of local economic conditions and housing affordability across the country.
