March 22, 2017, 10:33 A.M. ET February Home Sales Drop Almost 4% from January Level By Amey Stone Existing home sales surprised to the downside Wednesday, a new report from the National Association of Realtors shows. The annualized rate of sales was 5.48 million, down from 5.69 million in January. That pace, however, is still 5.4% higher than a year ago. Lawrence Yun, NAR chief economist, explained: Realtors are reporting stronger foot traffic from a year ago, but low supply in the affordable price range continues to be the pest that’s pushing up price growth and pressuring the budgets of prospective buyers. Newly listed properties are being snatched up quickly so far this year and leaving behind minimal choices for buyers trying to reach the market. Aaron Kohli dubbed the disappointing result, “bond bullish” in his note to clients. Indeed, the yield on the 10-year Treasury note fell to 2.37%, the lowest level since late February, after the report. He explained: Existing homes make up the bulk of sales and are less volatile than the new homes series with some effects from the higher rates likely weighing on the results as well. Not an optimistic print.