Alex Veiga, Associated Press Business Writer
Sales of previously occupied US homes fell in April. The rise in mortgage rates and prices have been prevented from future home buyers during the busiest period in the housing market.
Existing home sales fell 0.5% last month to a seasonally adjusted annual rate of 4 million units since March, the National Association of Realtors said Thursday. Sales were the slowest in April, dating back to 2009. Sales in March were the slowest of the month, dating back to 2009.
Sales fell 2% compared to April last year. According to FactSet, the latest home sales were just under the 420 million pace economists expected by the 4.1 million pace economists.
Home prices have increased for the 22 consecutive years, but have slowed down. The median national selling price rose 1.8% from the previous year in April to $414,000, the highest ever in April.
“The affordable conditions are clearly high markets, particularly mortgage rates,” said Lawrence Yun, chief economist at NAR.
The U.S. housing market has been in a sales recession since 2022, when mortgage rates began to rise from lows during the pandemic era. Sales of previously occupied US homes fell to their lowest levels last year in nearly 30 years.
The average 30-year mortgage rate has remained relatively high so far, just above 7% so far, set in mid-January. The previous low average rate point has dropped for a short time to 6.62% five weeks ago.
The rise in mortgage rates, which allow borrowers to add hundreds of dollars per month, continues to freeze many home buyers despite a sharp rise in market home inventory since last year.
At the end of last month there were 1.45 million homes for sale, up 9% from March and 20.8% higher than last April, NAR said.
This will lead to a 4.4 month supply at the current sales pace, starting from a 3.5 month pace at the end of April last year. Traditionally, supply for 5-6 months was considered a balanced market between buyers and sellers.
Original issue: May 22, 2025 10:24am EDT
