Home Sales Rise, Sparking Optimism for Housing Market

Existing home sales increased in February, hinting at a potential housing market recovery.

Mar. 10, 2026 at 7:08pm

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After several stagnant years, the housing market is showing signs of a potential rebound. Sales of previously-owned homes rose 1.7% in February, with inventory improving and prices rising slightly. Mortgage rates briefly dipped below 6% earlier in the month, sparking a mini buying spree in some areas. However, experts caution that the market still has a long way to go to return to pre-pandemic levels.

Why it matters

The pickup in home sales could be an indication that the housing market is starting to recover, after years of stagnation. This is important for the broader economy, as the housing market is a key driver of economic activity. A healthier housing market could boost consumer confidence and spending, as well as spur construction and related industries.

The details

Sales of previously-owned homes rose 1.7% in February, according to the National Association of Realtors (NAR). Inventory is also improving, giving buyers more options. Prices rose slightly for the month, but remained relatively tame. The brief dip in mortgage rates below 6% earlier in February may have sparked a mini buying spree in some areas, as buyers and sellers responded to the improved affordability. However, experts caution that the market still has a long way to go to return to pre-pandemic levels of activity.

  • In February 2026, existing home sales rose 1.7%.
  • Mortgage rates briefly dipped below 6% earlier in February 2026.

The players

Lawrence Yun

Chief economist for the National Association of Realtors (NAR).

Samuel Tombs

Chief U.S. economist for Pantheon Macroeconomics.

James Deskins

A broker with The HomeBuyer's Advocate in metro Columbus, Ohio.

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What they’re saying

“Housing affordability is improving, and consumers are responding. Still, there is a long way to go to return to pre-pandemic levels of transaction activity.”

— Lawrence Yun, Chief economist, National Association of Realtors (USA TODAY)

“The return of existing home sales to their 2025 average in February hints at an underlying pick-up, given that sales likely were weighed down by Winter Storm Fern, which struck in late January.”

— Samuel Tombs, Chief U.S. economist, Pantheon Macroeconomics (USA TODAY)

“The fall in the average 30-year mortgage rate since the start of the year suggests that existing home sales will rise to 4.4M soon, the highest level since mid-2022.”

— Samuel Tombs, Chief U.S. economist, Pantheon Macroeconomics (USA TODAY)

What’s next

Experts will be closely watching the housing market in the coming months to see if the pickup in sales continues, and whether it leads to a broader recovery in the sector.

The takeaway

The rise in existing home sales in February, coupled with the brief dip in mortgage rates, suggests that the housing market may be starting to recover from its recent stagnation. However, the market still has a long way to go to return to pre-pandemic levels of activity, and much will depend on factors like inflation and interest rates in the months ahead.