Home sales improved in February but mortgage-rate increases may slow gains

Existing home sales rose 1.7% in February to a 4.09 million annual rate; recent mortgage-rate volatility has pushed averages from about 6.05% to 6.14%.

Existing home sales showed a modest month-to-month improvement in February, according to National Association of Realtors data. Sales rose 1.7% from January to a seasonally adjusted annual rate of 4.09 million. Activity improved across most regions but remained weak overall compared with a year earlier. Mortgage rates eased to near recent lows in February but have since edged higher amid market volatility. Key figures: - Existing home sales increased 1.7% from January to a 4.09 million seasonally adjusted annual rate. - Sales rose in all parts of the country except the Northeast, where a prolonged cold snap and a blizzard affected activity. - Sales are down 1.4% from February 2025 after a weak January that was revised to a 5.9% drop. - Mortgage rates averaged about 6.05% in February and moved to about 6.14% in recent days as markets reacted to volatility tied to the war in Iran. - NAR chief economist Lawrence Yun described the affordability improvement and modest sales gain as welcome but said the sector is still underperforming in the broader picture. Summary: The month-to-month rise indicates some buyers returned as mortgage rates eased, but sales remain below year-earlier levels and recent rate moves have raised concerns about sustaining momentum. Undetermined at this time.