US home sales unexpectedly increased in February, with the National Association of Realtors reporting a rise in previously owned home transactions. The prior month's sales figures were also revised upward, indicating stronger market momentum than initially reported. This positive trend comes as mortgage rates have declined, making homeownership more accessible to buyers.

A key factor driving the sales increase is the combination of falling mortgage rates and modest growth in asking prices. The affordability equation has improved for potential buyers, as lower borrowing costs offset the gradual price increases in the housing market. This shift has encouraged more buyers to enter the market, boosting overall sales volume.

The housing market's rebound suggests that the sector may be finding a new equilibrium after months of sluggish activity. With mortgage rates trending downward and inventory levels stabilizing, the conditions appear favorable for continued sales growth in the coming months. The market's response to these changing dynamics demonstrates the sensitivity of home sales to financing costs and price levels.