Source: Economics Group of Wells Fargo Bank, N.A.Summary
Buyers Jump on Lower Mortgage Rates in February
- Existing home sales surged 14.5% in February to a 4.58 million-unit pace, the largest month-over-month increase since December 2015, excluding the pandemic era.
- The reading surpassed consensus expectations for a solid 5.0% increase. Lower mortgage rates early this year drove a turnaround in mortgage applications for purchase and pending home sales, which presaged the surge in resales.
- Single-family resales drove most of the jump. Sales climbed 15.3% to 4.14 million-unit annual pace during the month, ending 12 straight months of declines.
- The rebound in existing home sales was broad-based with all four regions recording increases. Sales jumped 19.4% and 15.9% in the West and South, respectively. Resales in the Midwest grew 13.5% while the Northeast grew at a slower 4.0%.