Home sales cool off as mortgage rates hit 3-month high

The big picture: Sales fell 0.5% from March to April and declined 2% from a year earlier for a seasonally adjusted rate of 4 million, the National Association of Realtors reported Thursday.

• Median prices rose 1.8% year over year to $414,000, a record high for April, though it was the fourth straight month that the rate of growth has declined.
• Average days on market rose to 29 from 26 a year earlier.

State of play: Higher borrowing costs are likely keeping some prospective buyers on the sidelines.

• The average 30-year fixed-rate mortgage this week is 6.86%, the highest rate since mid-February, Freddie Mac reported Thursday.

Between the lines: Inventory is on the rise after years of short supply, giving buyers a few more options.

• Yes, but: It's still below normal.
• "At April's sales pace, it would take 4.4 months to exhaust the current inventory of existing homes, up from 3.5 months a year ago," Reuters reported. "A four-to-seven-month supply is viewed as a healthy balance between supply and demand."

The bottom line: The housing market isn't immersed in turmoil, but it's also not humming like it was a few years ago.