US existing home sales unexpectedly increase in February

Core Insights - U.S. existing home sales unexpectedly increased by 1.7% in February to a seasonally adjusted annual rate of 4.09 million units, driven by lower mortgage rates and moderated house-price growth [2][3] - Despite the monthly increase, overall existing home sales fell 1.4% year-over-year, indicating ongoing challenges in the housing market [4] Mortgage Rates and Affordability - Mortgage rates have decreased significantly this year, with the popular 30-year fixed mortgage rate averaging 6% last week, down from 5.98% the previous week [5][6] - The Housing Affordability Index improved to 117.6 in February from 117.1 in January, reflecting better affordability across all regions compared to last year [4] Inventory and Supply Dynamics - The inventory of existing homes rose by 2.4% to 1.29 million units, although it remains below pre-pandemic levels, with supply up 4.9% from a year ago [7] - At the current sales pace, it would take 3.8 months to exhaust the existing home inventory, an increase from 3.6 months a year ago [7]