Stock market today: Dow, S&P 500, Nasdaq slip as Fed-fueled rally stalls

Sales of existing homes rose in February as more inventory became available, offering buyers more choices.

Existing home sales increased 4.2% in February to a seasonally adjusted annual rate of 4.26 million, according to the National Association of Realtors. Economists polled by Bloomberg expected existing home sales to hit a pace of 3.95 million in February.

Sales are still 1.2% lower than a year ago, however.

“Home buyers are slowly entering the market,” NAR chief economist Lawrence Yun said in the press release. “Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand.”

Total housing inventory reached 1.24 million units at the end of February, 5.1% higher than in January and 17% from one year ago.

Some house hunters remain undecided about buying a home as mortgage rates have barely moved at 6.6%. In fact, separate data shows total mortgage application volume dropped 6.2% from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index.

The median home sale price hit a record high, rising 3.8% from a year ago to $398,400. This marks the 20th consecutive month of year-over-year price increases.