February home resales jump much more than expected, despite higher mortgage rates
Sales of previously owned homes in February rose 4.2% from January to 4.26 million units on a seasonally adjusted, annualized basis, according to the National Association of Realtors.
Sales of previously owned homes in February rose 4.2% from January to 4.26 million units on a seasonally adjusted, annualized basis, according to the National Association of Realtors. Industry analysts had expected a drop of 3%.
Sales were 1.2% lower compared with February of last year.
This count is based on closings, so contracts signed in December and January, when mortgage rates were rising and briefly held in the 7% range on the 30-year fixed. Rates today are in the high 6% range.
“Home buyers are slowly entering the market,” said Lawrence Yun, NAR’s chief economist, in a release. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”
Sales were only higher annually in the highest price categories, above $750,000. Sales around the median price were down 3% year over year.
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