Existing Home Sales Drop 3.6% as Mortgage Rates Hold Prices at Record Highs

The median existing-home price rose 1.4% year-over-year to $408,800, reaching a record high for March. This price support is driven by limited supply, as housing inventory remains below historical norms despite a 3.0% increase from February to 1.36 million units. Existing-home sales declined 3.6% month-over-month in March in a seasonally adjusted annual rate of 3.98 million units. Sales also fell 1% from a year earlier. Potential buyers were kept on the sidelines by elevated mortgage rates, which rose in recent weeks amid inflation concerns and geopolitical tensions that pushed energy prices higher. The median existing-home price reached a record high for March.