- China offers $325 bn in fiscal stimulus for ailing economy
- Dodgers drop Padres 2-0 to advance in MLB playoffs
- Alexei Navalny wrote he knew he would die in prison in new memoir
- Last-minute legal ruling allows betting on US election
- Despite hurricanes, Floridians refuse to leave 'paradise'
- Israel observes Yom Kippur amid firestorm over Lebanon strikes
- Trump demonizes migrants in dark, misleading speech
- X says 'alert' to manipulation efforts after pro-Russia bots report
- US, European markets rise before Boeing unveils sweeping job cuts
- Small Quebec company dominates one part of NHL hockey: jerseys
- Comoros shock Tunisia, Salah, Mbeumo strike in AFCON qualifiers
- Boeing to cut 10% of workforce as it sees big Q3 loss
- Germany win in Nations League as 10-man Dutch rescue point
- Undav brace sends Germany to victory against Bosnia
- Israel says fired at 'threat' near UN position in Lebanon
- Want to film in Paris? No sexism allowed
- Ecuador's last mountain iceman dies at 80
- Milton leaves at least 16 dead, millions without power in Florida
- Senegal set to announce breakaway development agenda: PM
- UN says 2 peacekeepers wounded in south Lebanon explosions
- Injury-hit Australia thrash 'embarrassing' Pakistan at Women's T20 World Cup
- Internal TikTok documents show prioritization of traffic over well-being
- Israel says fired at 'immediate threat' near UN position in Lebanon
- New US coach Pochettino hails Pulisic but worries over workload
- Brazil orders closure of 2,000 betting sites
- UK govt urged to raise pro-democracy tycoon's case with China
- Sculptor Lalanne's animal creations sell for $59 mn
- From Tesla to Trump: Behind Musk's giant leap into politics
- US, European markets rise as investors weigh rates, earnings
- In Colombia, children trade plastic waste for school supplies
- Supercharged hurricanes trigger 'perfect storm' for disinformation
- JPMorgan Chase profits top estimates, bank sees 'resilient' US economy
- Djokovic proves staying power as he progresses to Shanghai semi-finals
- Sheffield Utd boss Wilder 'numb' after Baldock death
- Little progress at key meet ahead of COP29 climate summit
- Fans immerse themselves in Marina Abramovic's first China exhibition
- Israel says conducting review after UN peacekeepers wounded in Lebanon
- 'Party atmosphere': Skygazers treated to another aurora show
- Djokovic 'overwhelmed' after 'greatest rival' Nadal's retirement
- Zelensky in Berlin says hopes war with Russia will end next year
- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Djokovic proves staying power as progresses to Shanghai semi-finals
- Hurricane Milton leaves at least 16 dead as Florida cleans up
- Britain face 'ultimate challenge' in America's Cup duel with New Zealand
- Lebanon calls for 'immediate' ceasefire in Israel-Hezbollah war
- Nihon Hidankyo: Japan's A-bomb survivors awarded Nobel
- Thunberg leads pro-Palestinian, climate protest in Milan
- Boat captain rescued clinging to cooler in Gulf of Mexico after storm Milton
- Tears, warnings after Japan atomic survivors group win Nobel
US home sales tick up in January on lower mortgage rates
Existing home sales in the United States crept up in January, according to industry data released Thursday, on slightly higher listings and demand as buyers made the most of cooler mortgage rates.
Sales of previously owned homes rose 3.1 percent from December to January, to a seasonally adjusted annual rate of 4.0 million, said the National Association of Realtors (NAR).
This was the strongest since August 2023, as mortgage rates edged down slightly in the month. Levels soared in recent years as the Federal Reserve rapidly lifted the benchmark lending rate to fight inflation.
With higher mortgage rates, homeowners have been reluctant to sell as they previously locked in lower levels -- fueling a lack of inventory in the property market.
"While home sales remain sizably lower than a couple of years ago, January's monthly gain is the start of more supply and demand," said NAR chief economist Lawrence Yun.
Compared with January 2023, home sales were still 1.7 percent down last month.
The median price of existing homes jumped 5.1 percent from a year ago, reaching an all-time high for the month of January at $379,100.
- 'Housing shortage' -
In a press briefing, Yun said "home prices are again outpacing wages" for the first time in more than a year, calling this "unhealthy."
"It is a testament to the housing shortage that we are facing in America," he said.
Yun also noted that multiple offers for mid-priced homes are common, with many homes being sold within a month.
"The elevated share of cash deals –- 32 percent -- indicated a market full of multiple offers and propelled by record-high housing wealth," he added. This proportion was 29 percent a year ago.
While January saw an improvement in sales, Yun said "we are not yet out of the woods."
Averages for the popular 30-year fixed-rate mortgage hovered between 6.6 percent and 6.7 percent in January, according to home loan finance company Freddie Mac.
But as of February 15, this increased to around 6.8 percent.
"A pick-up in building activity and a decline in borrowing costs as the Fed pivots to rate cuts this year could provide support to home sales over time," said economist Rubeela Farooqi of High Frequency Economics.
But Pantheon Macroeconomics warned: "A full recovery from the plunge in sales in 2022 and 2023, triggered by the massive increase in mortgage rates, likely will take most of the next two years."
Existing home sales make up the vast majority of such transactions in the country.
C.Garcia--AMWN