It's a slow start to the spring home-buying season
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Weak consumer confidence, scarce inventory and higher mortgage rates — that combination explains the slow start to the spring home-buying season.
By the numbers: Existing-home sales fell 3.6% last month, to a seasonally adjusted annual rate of 3.98 million — down 1% from a year ago, according to the National Association of Realtors.
- The median existing home price rose 1.4%, to $408,800, a new record for the month of March.
Between the lines: The monthly decline bucks a February gain that had raised hopes that more buyers were coming off the sidelines as mortgage rates slipped.
- Mortgage rates averaged 6.2% in March, up from 6% the prior month.
What they're saying: "March home sales remained sluggish and below last year's pace," NAR chief economist Lawrence Yun said in a release. "Lower consumer confidence and softer job growth continue to hold back buyers."
- NAR said that an additional 300,000 to 500,000 homes for sale would bring the housing market "closer to normal conditions" that would help keep a lid on prices.
- Strong price growth, however, means the typical homeowner has accumulated about $128,000 in housing wealth since 2020, NAR said.
What to watch: NAR trimmed its 2026 home sales forecast. The group expects new-home sales to be flat this year, down from a prior projection of a 5% gain.
- "Mortgage rates have been rising, and that has led us to trim our home sales outlook for the year. ... Even with a more modest pace of sales growth, home prices continue to steadily increase due to minimal inventory growth," Yun said.
