Mortgage rates tumbled in the U.S. as the Russian invasion of Ukraine caused global investors to shift assets into dollar-denominated bonds.
House hunters are contending with a shortage of available properties, as well as rising mortgage rates, NAR says in a report.
Sales of new houses in January retreated for the first time in three months as higher mortgage rates eroded buying power.
Demand for real estate is high as consumers try to buy homes before financing costs rise further, said NAR's Yun.
Rates are rising as the bond markets lose their biggest buyer – the Federal Reserve.
Housing starts plunged by 4.1% last month as Omicron worsened shortages of labor and building supplies.
Homebuilder confidence declined in February, the second consecutive monthly drop, the National Association of Home Builders said.
Existing home sales likely will total 6.41 million this year, the investment bank said in a note to clients, beating the projections of other housing forecasters.
A shortage of both new and existing homes on the market is keeping demand high among buyers, the report said.
Consumer confidence fell in February to a one-decade low as higher rates of inflation increased grocery store bills and energy costs for Americans.
