US: Sales of existing homes ramped up in February - Wells Fargo

Data released today showed a rebound in sales of existing home sales in February. Analysts at Wells Fargo point out sales benefited from better weather early this year and lower mortgage rates.

Key Quotes: 

“After declining for much of last year, existing home sales were poised for rebound. Pending home sales, which reflect purchase contracts, had jumped 4.6% in January, which meant that sales, which reflect closings, would likely rise in February.”

“Seasonal adjustment likely exaggerated the extent of the improvement. The 5.51 million-unit pace is 1.8% below the year ago pace, which was also the cyclical peak. Benefitted

“Existing home inventories continue to trend higher and are 3.2% above their year-ago level. Homes are remaining on the market longer than a year ago, which has moderated price appreciation.”