Home Sales Rise As Trump Promised

In February, U.S. home sales saw a significant increase, driven by easing mortgage rates and a greater number of properties available on the market. This uptick in sales aligns with President Donald Trump’s campaign promises to bolster the housing market and support homeownership.

Sales of previously occupied U.S. homes rose 4.2% in February compared to January, reaching a seasonally adjusted annual rate of 4.26 million units, according to the National Association of Realtors. This increase marks a positive trend, although sales fell 1.2% compared with February of the previous year, ending a string of five consecutive annual increases.

The national median sales price also saw a notable increase, rising 3.8% from the previous year to $398,400, setting an all-time high for the month of February. This price increase reflects the 20th consecutive month of annual price growth, indicating a robust demand for housing despite economic fluctuations.

The rise in home sales can be attributed to several factors, including the modest pullback in mortgage rates and an increase in the inventory of homes available for sale. The average rate on a 30-year mortgage briefly fell to a two-year low last September but climbed back to just above 7% by mid-January. However, mortgage rates have since declined, sliding to an average of 6.76% by the end of February, making home purchases more affordable for buyers.

Additionally, the inventory of unsold homes increased by 5.1% from January and by 17% from the previous year, translating to a 3.5-month supply at the current sales pace. This increase in available properties provided home shoppers with a wider selection, contributing to the rise in sales.

The easing of mortgage rates and the increased supply of homes on the market have encouraged home shoppers, leading to the strongest sales pace in a year. This trend is expected to continue as the spring homebuying season approaches, traditionally a time when more properties become available.

President Trump’s administration has been vocal about its commitment to supporting the housing market. During his campaign, Trump promised to create an environment conducive to homeownership by addressing regulatory burdens and promoting economic policies that stimulate growth. The recent increase in home sales and prices reflects the administration’s efforts to fulfill these promises, although challenges remain in ensuring affordable housing for all Americans.

As the housing market continues to evolve, the administration’s policies and the broader economic conditions will play a crucial role in shaping the future of homeownership in the U.S. The recent trends indicate a positive outlook, but sustained efforts will be necessary to maintain this momentum and address the ongoing challenges in the housing sector.