US Existing-Home Sales Increase as Affordability Improves (1)

Sales of previously owned US homes unexpectedly rose in February and the prior month was revised up, helped by a decline in mortgage rates and modest growth in asking prices.

Contract closings increased 1.7% to a 4.09 million annualized rate, according to National Association of Realtors data released Tuesday. The pace exceeded nearly all estimates in a Bloomberg survey of economists.

One emerging bright spot for the housing market is improving affordability, with mortgage rates receding recently along with price growth. The NAR’s monthly housing affordability gauge, which reflects changes in home prices, median income ...