Mortgage Rate Volatility Shifts Homebuyers to the Sidelines

Monthly payments for financed home purchases increased as mortgage rates rose from 5.98% to 6.37% last week. This shift kept potential buyers on the sidelines. Existing home sales fell 3.6% in March to a seasonally adjusted annual rate of 3.98 million units, a 1% decline from a year ago. First-time buyers accounted for 32% of transactions in March, down from 34% in February. All-cash sales fell to 27% of deals from 31% in February. Housing inventory remains constrained at 1.4 million unsold homes, or a 4.1-month supply. Median existing-home price rose 1.4% year-over-year to $408,800.