U.S Existing Home Sales Reverses after 2-Month Gains. Slips by 6.6% in February

U.S Existing Home Sales Reverses after 2-Month Gains. Slips by 6.6% in February

Existing home sales plunged 6.6% in February to an adjusted annual rate of 6.22 million, according to the National Association of Realtors press release. The sales were still 9.1% higher than last year.

Housing inventory remained at a record-low of 1.03 million units, down 29.5% year over year, fueling home sales decline.

The median existing-home sales price rose 15.8% to $313,000 year over year, as all regions posted double-digit price gains. 

Fixed-rate mortgage rate was 2.81% in February, up from 2.74% in January.

NAR’s chief economist Lawrence Yun cautioned of a possible slowdown in growth in the coming months as higher prices and rising mortgage rates cut into home affordability.

First-time buyers accounted for 31% of sales in February, down from 33% in January and from 32% in February 2020.

Second-home buyers purchased 17% of homes, up from 15% in January and equal to the percentage from February 2020

Distressed sales held to January’s 1% of sales, but down from 2% in February 2020.

SPDR Homebuilders ETF is currently declining. XHB is down 0.73%

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