CNBC
The biggest drop in rates so far this year came not last week, but in January and February, when the 30-year fixed mortgage fell from a high of 7.26% to 6.74%. Despite that decline, pending home sales, which are a measure of initial signed contracts on existing homes, and therefore the most recent indicator of activity, rose just 2% in February from January, according to the National Association of Realtors®. Sales were still 3.6% lower than February 2024. "Despite the modest monthly increase, contract signings remain well below normal historical levels," said Lawrence Yun, NAR’s chief economist. "A meaningful decline in mortgage rates would help both demand and supply – demand by boosting affordability, and supply by lessening the power of the mortgage rate lock-in effect."