The housing market has experienced a notable decline, with existing home sales dropping by 5.9% in March compared to February. This marks the largest month-to-month decline since November 2022. Additionally, sales in March were 2.4% lower than in March of the previous year. The downturn was unexpected following an increase in February, as more inventory was anticipated to boost sales. Spring is traditionally a busy period for home sales due to families moving when schools are out for summer. However, high mortgage rates continue to hinder the market. Mortgage rates have recently risen, influenced by President Trump’s tariff threats affecting bond markets. The average rate for a 30-year fixed-rate mortgage reached 6.81% last week. Home prices are still rising, albeit at a slower pace. The median existing home sales price in March was \$403,700, up from \$392,900 a year ago and \$398,400 in February. Analysts predict that home sales will remain stagnant due to the disparity between current mortgage rates and existing ones. New home sales, however, showed a 7.4% increase from February and are 6% higher than last year. The median price for new homes sold in March was \$403,600, indicating a shift towards smaller, more affordable homes. Despite this, mortgage applications decreased by 12.7% in the week ending April 18 due to rising rates. — new from NPR
