Affordability Challenges Dampen Resales at the Start of Spring Selling Season
Source: Economics Group of Wells Fargo Bank, N.A.
Summary
Slow Start to Spring Selling Season
Existing home sales dropped 5.9% in March. The monthly decline pushed the pace of resales to 4.02 million, the slowest since January 2024. March’s pullback largely reflects ongoing affordability challenges for buyers, in particular the relatively high mortgage rates which prevailed in January and February, when buyers first went under contract. Although buyer financing costs temporarily dipped lower in March, mortgage rates have jumped back to near 7% in April alongside recent financial market volatility. In addition to the elevated stance of mortgage rates, affordability continues to be pressured by rising home prices.