US existing home sales increased 1.7 percent in February
US existing home sales rose 1.7% in February to a 4.09 million unit rate as lower mortgage rates drew buyers. First-time buyers hit a five-year high of 34%.
Existing home sales in the United States experienced an unexpected rise in February, driven by a combination of declining mortgage rates and a slowdown in home price appreciation. According to a report from the National Association of Realtors (NAR), sales increased by 1.7% to a seasonally adjusted annual rate of 4.09 million units, surpassing economist expectations of a decline to 3.89 million units. The improvement in affordability has become a key political issue ahead of the upcoming midterm elections.
The housing market continues to face headwinds despite the recent uptick. Geopolitical tensions, specifically the conflict involving Israel and Iran, present risks of higher inflation which could subsequently push mortgage rates upward. Additionally, the volatility in financial markets and potential impacts on the labor market remain points of concern for the broader economy.
