Existing home sales retreat in April
|Summary
Resale market takes a step back
Higher mortgage rates appear to be pouring water on the resale market. Existing home sales dipped for the second consecutive month in April, corresponding with a steady increase in the 30-year fixed rate over the months prior. Resales have still improved on balance this year, but higher interest rates threaten to set back the housing market recovery. Rising prices are also worsening affordability conditions and raising the hurdle for homeownership. There are several reasons to remain cautiously optimistic, however. Growing resale supply is a tailwind as April’s slower sales pace led to the highest inventory count since October 2022. Furthermore, we expect mortgage rates to trend lower this year as inflation gradually subsides and the Fed begins easing policy in the fall.
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