WASHINGTON — U.S. existing home sales fell to a nine-month low in March, weighed down by tight inventory, weakening consumer sentiment and concerns about the labor market, according to data reported by the National Association of Realtors.
Sales declined 3.6% to a seasonally adjusted annual rate of 3.98 million units, the lowest level since June 2025 and below economists’ expectations of 4.06 million units, the NAR said. Existing home sales are counted at contract closing, meaning March figures largely reflect agreements signed in January and February, when mortgage rates had been easing.
Despite some improvement in affordability earlier this year, broader economic pressures have dampened demand. The ongoing conflict involving the U.S., Israel and Iran has driven up gasoline prices and contributed to a stock market selloff, eroding household purchasing power and wealth, Reuters reported.
Consumer sentiment has also dropped to a record low, which the Realtors group cited as an additional drag on activity.
No Quick Rebound
“There is little in the near-term backdrop to suggest a quick rebound in sales,” said Daniel Vielhaber, an economist at Nationwide, according to Reuters. “We continue to look for sluggish sales this year, particularly in the first half, before a gradual pickup as mortgage rates decline in the second half and into 2027.”
As the CU Daily has been reporting, mortgage rates have climbed in recent weeks, further pressuring affordability. The average rate on a 30-year fixed mortgage rose from 5.98% in late February to 6.46% at the start of April and averaged 6.37% last week, according to data from Freddie Mac cited by Reuters.
Decline in Sales
Sales declined across all four U.S. regions and were down 1.0% compared with a year earlier. Activity remained particularly weak in the under-$250,000 price range, reflecting a persistent shortage of entry-level homes.
The Realtors group also revised its outlook, lowering its 2026 home sales growth forecast to 4% from a prior estimate of 14%. Its housing affordability index slipped to 113.7 in March from 117.5 in February, though it remained above the 104.2 level recorded a year earlier.
