U.S. Home Sales Plummet 5.9% in March, Highest Decline Since 2022

U.S. existing home sales plunged 5.9% in March, marking the largest monthly decline since late 2022 as high mortgage rates and rising home prices continued to deter buyers. The average 30-year mortgage rate climbed to 6.83%, further limiting affordability and sidelining many would-be first-time buyers. Despite the slowdown in sales, the national median home price increased 2.7% year-over-year to $403,700, reflecting the 21st consecutive month of price gains. Housing inventory rose to 1.33 million units, up 8.1% from February and 19.8% from a year ago, translating to a 4-month supply—higher than last year but still below a balanced market. Analysts and the National Association of Realtors attribute the sluggish market to affordability challenges, with NAR's chief economist warning that historically low housing mobility could signal broader economic concerns. Nevertheless, household wealth in real estate continues to grow, and mortgage delinquencies remain near historic lows, suggesting underlying market stability.