U.S. existing home sales drop 1.9% in April, pushed lower by high rates and high prices
WASHINGTON (AP) — Sales of previously occupied U.S. homes sank last month, pushed down by high mortgage rates and rising prices.
Existing home sales fell 1.9% to a seasonally adjusted annual rate of 4.14 million from a revised 4.2 million in March, the National Association of Realtors reported Wednesday. The median price of previously occupied homes rose 5.7% to $407,600 — the tenth straight increase and a record for April.
Lawrence Yun, the association’s chief economist, called the sales drop “a little frustrating.” Economists had expected sales to come in at 4.2 million.
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The rate on the benchmark 30-year, fixed-rate loan has risen five of the last six weeks and stands at 7.02%, up from 6.39% a year ago. Would-be homebuyers are also deterred by the high prices, caused partly by a tight inventory of available homes.
The supply of homes rose 9% from March to 1.2 million, but remains low: It was running at 1.7 million before the pandemic.
Paul Wiseman, The Associated Press