February home sales are ahead of last year by .5 percent according to the U.S. Census Bureau and the Department of Housing and Urban Development. The median price of a home sold during that period was $346,000, up from last year’s median of $298,000. Sales rose 19.4 percent compared to January, and are up 8.8 percent compared to last February.
The Fed is also keeping an eye on inflation. They say for now it remains low, but could potentially rise in the next few months as tax cuts impact the economy. If inflation does rise, home loan rates could potentially follow suit.
In the meantime, rates are still historically attractive.