February Home Sales Rise 4.2% as Inventory Grows and Mortgage Rates Ease

U.S. housing market shows signs of recovery, but affordability and economic uncertainty continue to challenge sustained growth.

Existing home sales in February 2025 increased by 4.2% from January, reaching an annual rate of 4.26 million units, exceeding forecasts.
The national median home price rose 3.8% year-over-year to $398,400, marking the 20th consecutive month of annual price increases.
Inventory levels climbed 17% from February 2024, with 1.24 million unsold homes representing a 3.5-month supply, still below the balanced range of 5-6 months.
First-time buyers accounted for 31% of sales, up from 26% a year earlier, though still short of the 40% share needed for a robust market.
The average 30-year fixed mortgage rate declined to approximately 6.65% by mid-March, but broader economic concerns may limit further market momentum.