Sales of existing homes edged slightly higher in the United States in February but uncertainty over higher mortgage rates could continue to negatively impact the domestic moving market in the country ahead of Spring.
CNBC reported that home sales in February rose 1.7% from January to a seasonally adjusted, annualized rate of 4.09 million units, according to the National Association of Realtors (NAR). Existing home sales were also down 1.4% from February of last year. The figures is represent closed sales, likely linked to activity in December and January, when mortgage rates fell.
“Despite the modest gain in home sales, actual housing demand remains muted relative to wage growth and job gains,” said Lawrence Yun, Chief Economist for the NAR in a release. “Wage growth is now outpacing home price growth by almost four percentage points. Mortgage rates are also measurably lower compared to a year ago. If demand picks up notably in the coming months and outpaces supply growth, home prices will inevitably rise. That is why increasing supply is so important to help limit home price growth, improve housing affordability, and boost transactions.”