AFP, Washington :
Sales of existing homes made the biggest jump in a year last month on improved housing supply, according to industry data released Thursday, as mortgage rates held at slightly lower levels.
Existing home sales advanced 9.5 percent in February from January to an annual rate of 4.38 million, seasonally adjusted, the National Association of Realtors (NAR) said.
“Additional housing supply is helping to satisfy market demand,” said NAR chief economist Lawrence Yun.
This was the highest rate since February 2023, with sales of previously owned homes bogged down by elevated mortgage rates in recent times.
Mortgage rates have climbed rapidly in the past two years as the Federal Reserve hiked the benchmark lending rate to ease demand and tamp down surging inflation — but levels have cooled somewhat from November 2023.
According to home loan finance company Freddie Mac, the 30-year fixed-rate mortgage averaged 6.7 percent as of March 14, down from the prior week.
Yun added that, mortgage rate changes are more incremental than before, and the NAR will be monitoring upticks.
Yun also noted the potential impact of a settlement announced last Friday that could slash the cost of buying and selling homes.
In a landmark deal, the NAR agreed to end lawsuits by paying $418 million in damages and eliminating rules on commissions — meaning a six percent sales commission which has become a standard in the industry would be no more.
While it is early days yet, Yun said sellers could be potential winners in this situation, knowing that they need not offer compensation to the buyers’ agent.
US home sales rise in February by most in a year
