February Existing-Home Sales Log Surprise Gain Amid Improving Affordability, NAR Data Show

12:45 PM EDT, 03/10/2026 (MT Newswires) -- US existing home sales unexpectedly increased in February as lower mortgage rates helped improve affordability, data from the National Association of Realtors showed Tuesday.

Sales rose 1.7% sequentially to a seasonally adjusted annual rate of 4.09 million units last month. The consensus was for a 0.8% decline in a survey compiled by Bloomberg. Month on month, sales grew in the Midwest, South and West, but dropped in the Northeast.

"Housing affordability is improving, and consumers are responding," NAR Chief Economist Lawrence Yun said. "Despite the modest gain in home sales, actual housing demand remains muted relative to wage growth and job gains."

The average 30-year fixed-rate mortgage decreased to 6.05% last month from 6.10% in January, the NAR said, citing Freddie Mac data.

"Assuming mortgage rates remain near current levels, we expect more sellers to return to the market as the spring selling season gets into full swing," Oxford Economics Lead US Economist Nancy Vanden Houten said in remarks e-mailed to MT Newswires.

Housing is the most affordable it has been since March 2022, according to NAR's housing affordability index, which showed that affordability improved for an eighth straight month in February.

Single-family home sales grew 2.5% month over month to 3.73 million units in February, while condominium and co-op sales fell 5.3% to 360,000 units.

The median sales price of existing homes edged up 0.3% year over year to $398,000, marking the 32nd straight month of annual gains, according to the NAR report.

"The supply of homes for sale edged higher, but inventory remains tight," Vanden Houten said. Existing home sales are expected to "gradually improve" in 2026, assuming the US-Israel war against Iran doesn't persist long enough to push interest rates higher or deteriorate the labor market, according to the note.

On Monday, US President Donald Trump indicated that the conflict in the Middle East could end soon, CNBC reported.

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