Existing Home Sales Soar Most Since COVID Lockdowns As Mortgage-Rates Tumbled

After 12 straight monthly declines, analysts expected existing home sales to rebound 5.0% MoM in February (after pending- and new-home sales turned up unexpectedly in January - as mortgage rates dipped). Analysts were right in direction but dramatically under-estimated the rebound which saw existing home sales soar 14.5% MoM...

Source: Bloomberg

That is the biggest jump since the post-COVID-lockdown reopening but sales are still down 22.6% YoY.

The median selling price of a previously owned home fell 0.2% from a year earlier to $363,000 in February, according to NAR. The decline was the first in 11 years, ending a record string of annual gains. The median selling price in the West dropped 5.6% from a year ago and may have helped bolster demand.

Sales strengthened in all regions, led by double-digit increases in the West, South and Midwest.

First-time buyers made up a historically low 27% of purchases in February, down 4 percentage points from a month earlier

The pace of sales (SAAR) was the highest in 5 months.

This is based on closings - so were likely signed in January, when mortgage rates had tumbled.

“Conscious of changing mortgage rates, home buyers are taking advantage of any rate declines,” Lawrence Yun, NAR’s chief economist, said in a statement.

“Moreover, we’re seeing stronger sales gains in areas where home prices are decreasing and the local economies are adding jobs.”

Mortgage rates have since soared back above 7.00%...

...oh and the banking system collapse means lending standards will have tightened dramatically since.

So, don't expect this sales surge to continue.