Existing home sales fell 2.4 percent in April to a seasonally adjusted annualized rate of 5.61 million units, representing a 5.9 percent decrease in sales compared to last year. NAFCU Chief Economist and Vice President of Research Curt Long analyzes the data in the latest Macro Data Flash report.
“Existing home sales fell for the third straight month in April. The inventory-to-sales ratio rose slightly, evidence that demand is cooling due to higher mortgage rates,” said Long.
“Fannie Mae’s Home Purchase Sentiment Index sunk to its lowest level since May 2020,” added Long. “Furthermore, respondents expressed heightened concerns about housing affordability and rising mortgage rates.”
Based on current month sales, there were 2.2 months of supply in April, slightly up from 1.9 months in March, with analysts considering six months of inventory a rough balance between supply and demand.
continue reading »