CNBC
Signed sales contracts on existing homes dropped 7.7% in April compared to March, the slowest pace since April 2020, according to the National Association of REALTORS®.
These so-called pending sales are a forward-looking indicator of closed sales one to two months later. Pending sales were 7.4% lower than in April of last year.
Sales were expected to be flat compared to March.
Since the count is based on signed contracts, it shows how buyers are reacting to mortgage rates in real time.
“The impact of escalating interest rates throughout April dampened home buying, even with more inventory in the market,” said Lawrence Yun, chief economist for the NAR. “But the Federal Reserve’s anticipated rate cut later this year should lead to better conditions, with improved affordability and more supply.”
Sales were down in every region of the country, but they fell hardest in the Midwest and West. The former has some of the most affordable markets in the nation, and the latter has some of the most expensive.
“The prospect of measurable home price declines appears minimal. The few markets experiencing price declines will be viewed as second-chance opportunities for buyers to enter the market if those regions continue to add jobs,” Yun added.
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