April Home Sales Slip Amid High Mortgage Rates

22 May at 10:35 am

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April Home Sales Slip Amid High Mortgage Rates/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. existing home sales declined in April as mortgage rates and prices stayed elevated. The median price hit a record $414,000, keeping buyers sidelined. Inventory rose, but the market remains tight.

A sale sign stands outside a home on the market Thursday, Oct. 17, 2024, in the east Washington Park neighborhood of Denver. (AP Photo/David Zalubowski)

April Housing Market Quick Looks

Existing home sales dropped 0.5% from March
Annual sales pace: 4 million units, below forecasts
Sales down 2% from April 2024
Median home price up 1.8% year-over-year to $414,000
April’s price marks record high for the month
Inventory rose to 1.45 million unsold homes, up 9% from March
Current market has 4.4 months of supply
Balanced markets typically see 5–6 months of supply

Deep Look: April Home Sales Slide as Mortgage Rates and High Prices Chill Spring Market

LOS ANGELES — May 22, 2025 — The U.S. spring homebuying season lost steam in April as high mortgage rates and record prices discouraged potential buyers from entering the market.

Sales of previously owned homes declined 0.5% from March to an annualized rate of 4 million units, according to data released Thursday by the National Association of Realtors (NAR). Year-over-year, home sales were down 2%.

April’s numbers missed economists’ expectations, which projected a slightly stronger 4.1 million sales pace, according to FactSet.

Prices Continue Climbing — Slowly

For the 22nd consecutive month, home prices posted an annual gain. The median sales price rose 1.8% from the previous year to $414,000, setting an all-time April record.

Though price growth has moderated from previous pandemic-era surges, affordability remains a major hurdle for many would-be homebuyers. “High borrowing costs and still-rising prices are squeezing out buyers,” said a senior housing economist.

Inventory and Supply Trends

Despite the sales slowdown, more properties are hitting the market. The number of unsold homes at the end of April reached 1.45 million, marking a 9% increase from March and a 20.8% jump from a year ago.

That translates into a 4.4-month supply at the current sales pace, a notable rise from 3.5 months a year ago. However, the market remains tilted toward sellers, as a 5- to 6-month supply is typically viewed as a balanced market.

Mortgage Rates Remain a Headwind

The housing market continues to be constrained by elevated mortgage rates, which have hovered around 7%, according to Freddie Mac’s weekly survey. High borrowing costs are discouraging both first-time buyers and current homeowners who are reluctant to give up older, lower-rate mortgages.

“This spring season is not living up to its usual momentum,” said NAR Chief Economist Lawrence Yun. “We need lower rates or stronger wage growth to bring buyers back.”