The National Association of Realtors (NAR) announced today that total existing home sales–including single-family homes, townhomes, condominiums and co-ops–increased 3.9 percent in February when compared to the previous month’s sales.
February’s increase in home sales is the largest monthly rise in over three years.
Many mortgage analysts attribute the increase in sales to long-term interest rates that remain near historic lows.
“The recent run of low long-term rates has served to bolster existing home sales,” Bill Emerson, CEO of Quicken Loans said.
He continued: “This week’s decision by the Federal Reserve to maintain the current Fed Funds Rate will have a positive impact on home sales in the short-term and, if rates remain favorable for an extended period, could help reduce the glut of unsold homes in the long run.”