Mortgage rates fell by about a quarter of a point over February, which could lead to increased home sales and purchases in March, according to a report from Zillow.
In February, 1.04 million homes were on the market, more than in any February since 2020 and 15% more than in February 2024.
With more homes for sale, buyer competition is slower. In February, listings spent about 23 days on the market before a sale was pending. That's six more days than in February 2024 and just four fewer days than before the pandemic.
"Affordability is still a massive challenge for those who have been waiting to buy a home, but the lower rates we've seen so far in March are taking the edge off," Zillow Chief Economist Skylar Olsen said in a statement. "Rate dips tend to energize buyers and sellers both; if they continue or hold, we should see more activity. Economic uncertainty is a counterbalance, one that will be felt in some areas of the country more than others. People tend to shelter in place when the future of their job or industry is uncertain."
Read the full report here.
