MNI BRIEF: US Existing Home Sales Surge 9.5% To 4.38M In Feb

U.S. sales of existing homes surged 9.5% to a seasonally adjusted annual rate of 4.38 million in February, the National Association of Realtors said Thursday, beating market expectations and the strongest monthly pace in a year.

Sales have declined 3.3% from last year. The national median home price was up 5.7% over the last year to USD384,500 and 1.6% higher than the previous month.

"We are in a new normal, and maybe for mortgage rates we're not going to 3% again. We will not go to 4% again, and even going to 5% may be difficult, especially given the large budget deficit the U.S. government is running," NAR chief economist Lawrence Yun told reporters, also emphasizing that a lack of supply in the market is keeping prices high. Yun added the recent rise in mortgage rates will "squeeze" home sales in coming months.