The National Association of REALTORS® reported that existing-home sales increased by 1.7% in February to a seasonally adjusted annual rate of 4.09 million, though sales remained down 1.4% year-over-year. Single-family home sales rose to a seasonally adjusted annual rate of 3.73 million, while existing condominium and co-op sales totaled 360,000 units annually. Total housing inventory stood at 1.29 million units, up 2.4% from January and 4.9% from one year ago. Properties typically remained on the market for 47 days in February, up from 42 days a year earlier, leaving unsold inventory at a 3.8-month supply, unchanged from the previous month and up from 3.6 months a year earlier. The median existing-home price for all housing types reached $398,000, marking 32 consecutive months of year-over-year gains. NAR Chief Economist Lawrence Yun noted that while inventory is growing, it remains sluggish as demand picks up, though housing affordability is improving and consumers are beginning to respond. Freddie Mac reported that the average 30-year fixed-rate mortgage was 6.05%, down from 6.10% the week prior.

The U.S. Bureau of Labor Statistics reported that the Consumer Price Index rose 0.3% in February on a seasonally adjusted basis, following a 0.2% increase in January. The all items index increased 2.4% over the past year before seasonal adjustment, matching January’s annual pace. February’s gain was led by a 0.2% rise in the shelter index, the largest contributor to the overall increase. The food index advanced 0.4% for the month, with food at home up 0.4% and food away from home rising 0.3%. The energy index also moved higher, climbing 0.6% in February. Core CPI (all items less food and energy) increased 0.2% during the month and rose 2.5% over the past 12 months, unchanged from January. Categories posting notable annual gains include personal care (+4.5%), household furnishings and operations (+3.9%), medical care (+3.4%), and recreation (+2.3%). Over the past year, food prices rose 3.1% and the energy index increased 0.5%.

The U.S. Bureau of Economic Analysis (BEA), in its second estimate for real Gross Domestic Product (GDP) for the fourth quarter, reported an annual growth rate of 0.7%, down from the 1.4% advance estimate and the 4.4% growth in Q3. Consumer spending increased 2.0% in the fourth quarter, with goods growing 0.4% (vs. 1.7% first estimate) and services growing 2.7% (vs. 2.8%). Government expenditures decreased 5.8%, a steeper drop than the 5.1% decline initially estimated. Business investment (nonresidential fixed investment) increased 2.2% (vs. 2.5%), while residential investment declined 0.5% (an improvement from the 1.5% decline initially estimated). The trade sector weighed on GDP growth, with exports falling 3.3% (vs. a 0.9% drop in the first estimate), while imports declined 1.1% (vs. 1.3%), providing a partial offset since imports are subtracted from GDP. The price index for gross domestic purchases increased 3.8% (vs. 3.7% first estimate). The PCE price index rose 2.9%, and the PCE price index excluding food and energy rose 2.7%, both unchanged from initial estimates.