U.S. Existing Home Sales Fall 0.5% April to Lowest Since 2009 Amid High Rates

U.S. existing home sales fell 0.5% in April to an annualized rate of 4 million, marking the slowest April pace since 2009 and missing economists' expectations of a 2% increase. Despite a rise in housing inventory to 1.45 million units—the highest for any April since 2020—and a slight increase in median home prices to $414,000, affordability remains a significant hurdle as elevated prices and mortgage rates near 6.81% suppress buyer activity. National Association of Realtors Chief Economist Lawrence Yun noted that pent-up housing demand continues to grow but remains unrealized, with any meaningful decline in mortgage rates seen as key to unlocking this demand. Regional sales varied, with declines in the West and Northeast, stability in the South, and gains in the Midwest, while first-time buyers accounted for 34% of purchases, the highest share since mid-2020. The market is described as a mild seller's market with increased inventory providing buyers more negotiating power, though the expected spring rebound has yet to materialize, leading to downward revisions in yearly sales forecasts. Overall, the persistent economic uncertainties and high borrowing costs continue to constrain the housing market's recovery.