Home sales improved in February, a sign that low mortgage rates are pushing some buyers away, even as overall demand remains muted.
Existing home sales rose 1.7% from January to a seasonally adjusted annual rate of 4.09 million, according to data from the National Association of Realtors released Tuesday. Sales improved in all parts of the country except the Northeast, which experienced prolonged cold weather and snowstorms in February.
Home sales rise month-on-month – but this follows a disappointing January. Sales fell 5.9% this month after the data was revised. And sales are still down 1.4% from February 2025, a sign that many buyers are frustrated even in an environment where low mortgage rates and easing home price appreciation have helped affordability.
Read more: Key factors influencing home buyers and sellers this month
“The improvement in housing affordability and the modest gains in home sales are welcome, but we are still underperforming in the big picture.” NAR Chief Economist Lawrence Yun said.
Mortgage rates averaged 6.05% last month, near the lowest level in several years. Yoon added that these prices are likely to keep some buyers, especially first-timers, from getting back into the market.
But in recent days, instability marked by the war in Iran has pushed mortgage rates up to an average of 6.14%. Yoon said the move has NAR “concerned.” He doesn’t see a repeat of the 1970s, when high oil prices boosted mortgage rates north of 18%, as likely, but he notes that higher inflation from an oil shock could raise mortgage rates.
Claire Boston Is a senior reporter for Yahoo Finance covering housing, mortgages, and home insurance.
