U.S. Existing Home Sales Drop in March Amid Rising Mortgage Rates
Sales of previously occupied U.S. homes declined by 3.6% in March to a seasonally adjusted annual rate of 3.98 million units, marking the slowest pace in nine months. This drop signals a sluggish start to the spring homebuying season, despite earlier easing in mortgage rates. The National Association of Realtors reported that sales also fell 1% compared to March of the previous year, primarily driven by declines in the Northeast and Midwest. Lawrence Yun, chief economist at NAR, attributed the weakness to lower consumer confidence and softer job growth, with consumer expectations remaining below recession-warning levels for the 14th consecutive month. Conversely, the national median home price rose 1.4% year-over-year to an all-time high of $408,800 for March. Mortgage rates have recently increased to 6.37% due to geopolitical tensions involving Iran and rising inflation concerns, prompting Yun to lower his 2026 sales growth forecast from 14% to 4%. The housing market continues to struggle with affordability issues, keeping sales near historic lows despite increased inventory in some areas.
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U.S. Existing Home Sales Drop in March Amid Rising Mortgage Rates
Sales of previously occupied U.S. homes declined by 3.6% in March to a seasonally adjusted annual rate of 3.98 million units, marking the slowest pace in nine months. This drop signals a sluggish start to the spring homebuying season, despite earlier easing in mortgage rates. The National Association of Realtors reported that sales also fell 1% compared to March of the previous year, primarily driven by declines in the Northeast and Midwest. Lawrence Yun, chief economist at NAR, attributed the weakness to lower consumer confidence and softer job growth, with consumer expectations remaining below recession-warning levels for the 14th consecutive month. Conversely, the national median home price rose 1.4% year-over-year to an all-time high of $408,800 for March. Mortgage rates have recently increased to 6.37% due to geopolitical tensions involving Iran and rising inflation concerns, prompting Yun to lower his 2026 sales growth forecast from 14% to 4%. The housing market continues to struggle with affordability issues, keeping sales near historic lows despite increased inventory in some areas.
AP News