Sales of previously owned homes in April fell to the lowest pace since the Covid pandemic started, according to the National Association of Realtors.
Existing home sales declined 2.4% compared with March to a seasonally adjusted annualized rate of 5.61 million units, the group said. Sales were 5.9% lower than in April 2021. That is the slowest rate since June 2020, which was artificially slow since the economy was struggling with sweeping shutdowns due to the coronavirus.
This count represents closings during the month, so it reflects contracts likely signed in February and March, when mortgage rates were rising. The average rate on the 30-year fixed mortgage started February at 3.66% and ended March at 4.78%, according to Mortgage News Daily. It is now hovering around 5.45%.
“We are moving back to pre-pandemic sales activity, but I expect further declines,” said Lawrence Yun, chief economist for NAR, citing that rates are now higher than they were when these contracts were signed.
