NAR chief economist Lawrence Yun noted that home prices continued to rise in regions where jobs are being added, and housing is relatively affordable. “However, the more expensive areas of the country are adjusting to lower prices.”
The median price of previously owned homes slid 0.9% from $379,300 a year ago to $375,700 in March. Meanwhile, housing inventory increased 1% month over month and 5.4% year over year to 980,000 units in March. Unsold inventory remained flat at a 2.6-month supply.
“Home sales are trying to recover and are highly sensitive to changes in mortgage rates,” said Yun. “Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand. It’s a unique housing market.”
After consecutive weeks of decline, the 30-year fixed mortgage rate averaged 6.27% as of April 13. That’s down from 6.28% from the previous week, according to data from Freddie Mac.
Holden Lewis, home and mortgage expert at NerdWallet, believes homebuyers are growing accustomed to higher mortgage rates.
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