Existing home sales jumped 3.8 percent in February to a seasonally adjusted annual rate of 4.26 million, according to the National Association of Realtors.
That sounds modest until you see the bigger number: sales are up 9.5 percent from a year ago, the strongest annual gain since 2010.
For anyone who has spent three years watching mortgage rates hover near 7 percent and inventory sit near record lows, this is a real shift.
The spring selling season is starting with more buyers actually closing deals instead of just scrolling listings.
The average 30-year fixed mortgage rate has drifted down toward the mid-6 percent range, and that small move matters more than it looks.
A buyer financing $350,000 at 7.2 percent pays about $2,377 a month in principal and interest.
At 6.5 percent, that same loan runs roughly $2,212 — about $165 less every month.
Over a year, that's nearly $2,000 back in a household budget already stretched by groceries and insurance.
Unsold existing homes rose to 1.24 million in February, up 17 percent from a year earlier, which works out to about 3.5 months of supply.
That's still tighter than the six months that signals a balanced market, but it's the best selection buyers have seen in years.
More listings mean fewer bidding wars and more room to negotiate on price, closing costs, or repairs.
The median existing-home price was $398,400 in February, up 3.8 percent year over year — still rising, but at a much cooler pace than the double-digit jumps of 2021 and 2022.
Homes are also sitting on the market slightly longer.
In many metros, well-priced homes still move in days, but overpriced listings are getting stale and seeing price cuts.
One group is still largely stuck: homeowners with sub-4 percent mortgages from 2020 and 2021.
Many would love to move but can't stomach trading a 3.5 percent rate for 6.5 percent.
That "lock-in effect" is slowly loosening as life events — new jobs, growing families, divorces — force moves anyway, which is part of why more homes are hitting the market.
If you're buying, get pre-approved before you tour anything, and don't assume you have to accept the first rate quoted.
Shopping multiple lenders can shave a quarter point or more off your loan.
If you're selling, price realistically from day one — the era of listing high and waiting for a bidding war is fading in most markets.
And if you're staying put, this is a decent moment to check whether refinancing your current mortgage or a home equity line makes sense.
The takeaway: the housing market isn't roaring back, but it's thawing.
After years of gridlock, more sales and more choices are a healthier sign for buyers and sellers alike.
Final Thoughts
Just don't expect 2021 again — slow and steady is probably the new normal.