April home sales disappoint as higher mortgage rates weigh on buyers
CNBC • • business
Key Points:
- Sales of previously owned homes in April rose slightly by 0.2% from March to 4.02 million units, falling short of analyst expectations for a 3% gain, and remained unchanged year-over-year.
- Housing affordability improvements, including mortgage rates lower than a year ago and income growth outpacing home price increases, modestly supported home sales despite mixed economic signals.
- Inventory increased 5.8% from March but remains tight at a 4.4-month supply, below the 6-month balanced market threshold, with multiple offers still occurring and buyers taking longer to decide.
- The median home price in April reached a record high of $417,700, up 0.9% year-over-year, while average days on market rose to 32 days, indicating slower sales activity.
- Mortgage rates have climbed to 6.42%, and although pending sales have improved recently, tightening supply is expected to continue driving prices upward.