Existing home sales fell 2.7 percent in March to a seasonally adjusted annual rate of 5.77 million annualized units, representing a 4 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 again in March. The inventory-to-sales ratio rose slightly but remains extremely depressed,” said Long.
“Despite the surge in mortgage rates, the market remains demand-heavy,” added Long. “Many would-be sellers are likely reluctant to part with two valuable assets: their current home and their mortgage rate.”
Based on current month sales, there were 2.0 months of supply in March, slightly up from 1.7 months in February, with analysts considering six months of inventory a rough balance between supply and demand.
continue reading »