CNBC
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 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.”
Inventory at the end of February stood at 1.24 million units, an increase of 17% year over year, but still just a 3.5-month supply at the current sales pace. A 6-month supply is considered balanced between buyer and seller. “We are still in a relatively tight market condition,” Yun said.