Completed sales of existing homes jump 14.5 percent in February to 4.58 million units at an annual rate from an unrevised 4.00 million units in January. However, sales are 22.6 percent below February 2022. The February reading is well above the consensus of 4.17 million units in an Econoday survey, and topped the high end of the range at 4.45 million units. The sharp uptick is a result of homebuyers moving quickly to take advantage of a dip in mortgage rates in December and January at a time when prices were more stable. However, the stock of homes available for sale remains limited. Home sellers may not be getting much higher than the asking price, but at least some are seeing multiple offers.

Resales are up for both single- and multi-unit properties. Single-family home sales are up 15.3 percent in February to 4.14 million units from 3.59 million units in January, and down 21.4 percent from February 2022. Sales of condos and co-ops are up 7.3 percent to 440,000 in February from 410,000 in January, and down 32.3 percent from a year ago. NAR Chief Economist Lawrence Yun noted that current homeowners with a low rate have no motivation to put their home up for sale.

The supply of homes available for sale fell to 2.6 months' worth in February after 2.9 months in January, but is above the 1.7 months' supply in February 2022. The median price of a home resale is up 0.5 percent to $363,000 in February from January, and down 0.2 percent from February 2022. The year-over-year decline was the first after 131 straight annual increases. Lower priced homes are receiving multiple offers, Yun said, while higher priced homes are remaining on the market longer. He also said existing home inventory conditions make resales almost 1-to-1 with sales of new homes.

The number of days on the market average 34 in February, up from 33 days in January, and higher than the 18 days in February 2022.

The Freddie Mac 30-year fixed rate for mortgages declined to an average of 6.36 percent in December from 6.74 percent in November and fell further to an average of 6.30 percent in January. February saw a tick higher to 6.34 percent but should remain sufficient to encourage homebuying for a little longer.

After January's lower-than-expected 4.0 million annualized rate, existing home sales in February are expected to rise to a 4.17 million annualized rate.

Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.

Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.

Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.