Demand for houses still grows despite interest rates increasing
Potential existing-home sales decreased in February as interest rates continue to rise, according to the Potential Home Sales model from First American Financial Corp., a provider of title insurance, settlement services and risk solutions for real estate transactions.
Potential home sales increased to a 5.7 million seasonally-adjusted, annualized rate. While this is down 0.5% from January, or 28,000 sales, it is up 2.4% over the past 12 months.
Potential home sales measures existing-homes sales, which include single-family homes, townhomes, condominiums and co-ops on a seasonally adjusted annualized rate based on the historical relationship between existing-home sales and U.S. population demographic data, income and labor market conditions in the U.S. economy, price trends in the U.S. housing market, and conditions in the financial market.