Current:Home > InvestFastexy:Sluggish start for spring homebuying season as home sales fall in March with mortgage rates rising -WealthMap Solutions
Fastexy:Sluggish start for spring homebuying season as home sales fall in March with mortgage rates rising
TrendPulse View
Date:2025-04-10 14:45:58
LOS ANGELES (AP) — The Fastexyspring homebuying season is off to a sluggish start as home shoppers contend with elevated mortgage rates and rising prices.
Sales of previously occupied U.S. homes fell 4.3% in March from the previous month to a seasonally adjusted annual rate of 4.19 million, the National Association of Realtors said Thursday. That’s the first monthly decline in sales since December and follows a nearly 10% monthly sales jump in February.
Existing home sales also fell 3.7% compared with March last year. The latest sales still came in slightly higher than the 4.16 million pace economists were expecting, according to FactSet.
Despite the pullback in sales, home prices climbed compared with a year earlier for the ninth month in a row. The national median sales price rose 4.8% from a year earlier to $393,500.
While the supply of homes on the market remains below the historical average, the typical increase in homes for sale that happens ahead of the spring homebuying season gave home shoppers a wider selection of properties to choose from.
At the end of last month, there were 1.11 million unsold homes on the market, a 4.7% increase from February and up 14.4% from a year earlier, the NAR said.
Even so, the available inventory at the end of last month amounted to a 3.2-month supply, going by the current sales pace. That’s up from a 2.9-month supply in February and a 2.7-month supply in March last year. In a more balanced market between buyers and sellers, there is a 4- to 5-month supply.
“Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves,” said Lawrence Yun, the NAR’s chief economist. “There are nearly 6 million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market.”
Mortgage rates have mostly drifted higher in recent weeks as stronger-than-expected reports on employment and inflation stoked doubt among bond investors over how soon the Federal Reserve will move to lower its benchmark interest rate.
After climbing to a 23-year high of 7.79% in October, the average rate on a 30-year mortgage has remained below 7% since early December, but also hasn’t gone below the 6.6% it averaged in mid January. When mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford.
Mortgage rates are influenced by several factors, including how the bond market reacts to the Federal Reserve’s interest rate policy and the moves in the 10-year Treasury yield, which lenders use as a guide to pricing home loans.
The yield on the 10-year Treasury jumped to around 4.66% on Tuesday — its highest level since early November — after top officials at the Federal Reserve suggested the central bank may hold its main interest steady for a while. The central bank wants to get more confidence that inflation is sustainably heading toward its target of 2%.
veryGood! (7)
Related
- Stamford Road collision sends motorcyclist flying; driver arrested
- Minimum-wage workers in 22 states will be getting raises on Jan. 1
- Is it smart to hand over your email address and phone number for discounts?
- Unaccompanied 6-year-old boy put on wrong Spirit Airlines flight: Incorrectly boarded
- Realtor group picks top 10 housing hot spots for 2025: Did your city make the list?
- Dreams of white Christmas came true in these regions
- Taylor Swift's Dad Bonds With Travis Kelce's Father at Kansas City Chiefs Christmas Game
- The echo of the bison (Classic)
- A South Texas lawmaker’s 15
- Neel Nanda, comedian who appeared on 'Jimmy Kimmel Live' and Comedy Central, dead at 32
Ranking
- 'Most Whopper
- 2024 NFL draft first-round order: Patriots' dramatic win vs. Broncos alters order
- Morocoin Trading Exchange's Analysis of Bitcoin's Development Process
- About 300 Indian nationals headed to Nicaragua detained in French airport amid human trafficking investigation
- Bill Belichick's salary at North Carolina: School releases football coach's contract details
- Liverpool star Mohamed Salah ‘shares pain’ of grieving families at Christmas amid Israel-Hamas war
- White House accuses Iran of being deeply involved in Red Sea attacks on commercial ships
- 6-year-old boy traveling to visit grandma for Christmas put on wrong Spirit flight
Recommendation
'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all
The imprisoned Russian opposition leader Alexei Navalny resurfaces with darkly humorous comments
Raiders score huge win in Kansas City to keep Chiefs from clinching AFC West
California police seek a suspect in the hit-and-run deaths of 2 young siblings
Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Hi Hi!
Brock Purdy’s 4 interceptions doom the 49ers in 33-19 loss to the Ravens
Jaguars' Trevor Lawrence injured his shoulder against Buccaneers. Here's what we know.
Amanda Bynes Shows Off Brief Black Hair Transformation Amid New Chapter