U.S. Existing Home Sales Unexpectedly Rise as Falling Mortgage Rates Boost Demand

MaticHoleFiller · 2026-03-27T09:36:13+00:00

In February, the US existing home sales unexpectedly increased by 1.8%, marking the first rise in three months, thanks to declining mortgage rates and a slowdown in home price growth. The National Association of Realtors (NAR) noted that while improved affordability has driven this growth, rising oil prices could reverse the trend.

MaticHoleFiller

2026-03-27 09:36:13

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U.S. existing home sales unexpectedly rose in February, marking the first increase in three months, as buyers took advantage of lower mortgage rates and a slowdown in home price increases.

The National Association of Realtors (NAR) reported on Tuesday that the index of existing home sales agreements increased by 1.8%. The median estimate in a Bloomberg survey of economists was a decline of 0.6%.

The increase in sales agreements in February coincided with mortgage rates falling to their lowest levels since 2022, providing a boost to the housing market ahead of the spring selling season. Lower borrowing costs and a slowdown in home price increases have recently improved housing affordability.

“The modest increase in sales agreements appears to be driven by improved affordability. However, this situation could reverse if rising oil prices push mortgage rates higher,” said NAR Chief Economist Lawrence Yun in a statement.

The existing home sales agreements report is a leading indicator of existing home sales, as homes typically remain under contract for one to two months before a transaction is completed.

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