U.S. pending home sales stagnated in April as high mortgage rates paired with limited inventory continued to curb buyer demand.
The National Association of Realtors’ index of contract signings to purchase previously owned homes held at 78.9 last month, according to data released Thursday.
“Not all buying interests are being completed due to limited inventory,” Lawrence Yun, the National Association of Realtors’ chief economist, said in a statement. “Affordability challenges certainly remain … but a sizeable increase in housing inventory will be critical to get more Americans moving.” Faltering sales in the Northeast offset small increases in the rest of the country. From a year earlier, U.S. home purchases were down nearly 23% on an unadjusted basis.
Mortgage rates are on the rise again. Last week, the contract rate on a 30-year fixed mortgage climbed to a two-month high of 6.69%. And with the labor market still strong and inflation elevated, consensus is growing that the Federal Reserve is not yet finished hiking interest rates.
Recently released data showed previously owned home sales eased to a three-month low in April. New-home purchases, which aren’t facing the same acute shortages of listings, continued to climb to the highest level since March 2022.