Existing Home Sales Move Down in April Low Inventory and High Mortgage Rates Continue to Constrain Resales

Source: Economics Group of Wells Fargo Bank, N.A.

Summary
Home Buying Still Looks to be Stabilizing Despite April’s Drop

  • Existing home sales retracted 3.4% to a seasonally adjusted pace of 4.28 million in April, the second consecutive monthly drop.
  • Higher mortgage rates in February and March likely put a dent in resale demand in April. After falling to 6.1% in late January, the average 30-year mortgage rate climbed back up to 6.7% by the first two weeks of March.
  • Despite the dip in April, home buying looks to be stabilizing. Resales in April remained 7.0% above the recent low point in January, when existing home sales registered a 4.0 million-unit pace.
  • April’s drop in resales was broadly shared across home types. Single-family home sales posted a 3.5% decline and condo and coop sales retreated 2.3% over the month.
  • Resale supply improved during the month, but only modestly. Single-family resale inventories rose 5.8% in April, the largest over-the-month bump since mid 2022. That said, the 2.8 months’ supply in April remained near a historically low level, which is a factor dragging down resales. READ FULL ARTICLE >>