Home prices and mortgage rates, which were a drag on home sales for most of 2024, stayed elevated and put off many buyers.

Sales of previously occupied US homes fell in January as rising mortgage rates and prices put off many would-be homebuyers despite a wider selection of properties on the market. Sales fell 4.9% last month from December to a seasonally adjusted annual rate of 4.

U.S. existing home sales declined 4.9% to an adjusted annual rate of 4.08M in January, trailing the 4.13M consensus and dropping from 4.29M in December (revised from 4.24M), according to data released by the National Association of Realtors on Friday.

The median price of a home sold in January was $396,900, up 4.8% from the year before and the highest price ever for the month of January.

Increasing retail sales in January and improving consumer confidence in February could point towards more optimism in the UK economy, however, concerns persist about slow economic growth and the threat of US tariffs.