In January, previously occupied U.S. home sales fell 4.9% to an annual rate of 4.08 million units, driven by persistent high mortgage rates and elevated home prices. Although sales increased 2% compared to January 2024, they remained below economist expectations. The national median price hit $396,900, marking a 4.8% annual rise. Despite an increase in listings, first-time homebuyers continue to struggle as affordability issues persist, with a 3.5-month supply of homes available. Experts predict that without significant decreases in mortgage rates, the challenges for potential buyers, particularly first-timers, are likely to continue.