What did existing home sales look like in February?
Sales of existing homes heading into the spring thaw after a chilly winter are showing signs of picking up around the country, the National Association of Realtors (NAR) said in a report released today.
Existing home sales, which the NAR defines as completed transactions for properties that include single-family homes, townhomes, condominiums and co-ops, increased in some regions even from January.
"Homebuyers are slowly entering the market," NAR Chief Economist Lawrence Yun said in the report. "Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand."
Total homes for sale at the end of February were 1.24 million units, up 5.1% from January and 17% from one year ago, the NAR report said.
"On a technical note, raw sales in February were down 5.2% from last year, which was a leap year with one extra day of business," Yun added in the NAR report. "However, after adjusting for this effect, combined with the winter seasonal factors, the momentum for home sales is flashing encouraging signs."
Which regions showed changes in pending home sales?
Two of four regions the NAR tracks in the U.S. showed increases in sales of existing homes in February, the NAR said.
- Sales of existing homes in the West increased 13.3% from the previous month.
- Completed transactions in the South edged up 4.4% from the previous month.
- In the Midwest, existing home sales were unchanged from January but up about 1% from a year ago.
- the Northeast experienced a 2% decline in existing home sales from last month but saw an increase of 4.2% over last year.
Wintertime and the holiday season tend to be slower periods for existing home sales, and sales could pick up as mortgage interest rates decline and the weather warms up heading into spring.
Did mortgage rates show any change?
According to data from Freddie Mac, the 30-year fixed rate mortgage averaged 6.67% as of March 20*. That’s up from 6.65% one week ago but down from 6.87% one year ago.
Continued cooling on mortgage rates will likely be a welcome sign to prospective homebuyers. A decrease in mortgage rates could also signal a continuing thaw in the housing market as we inch further into the spring homebuying season.
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