Spring home sales fall to lowest since 2022

The spring housing market, usually the busiest time for sales, is faltering. Existing home sales dropped 5.9% in March from February—the sharpest decline since November 2022—and fell 2.4% year-over-year. 

It is also the worst March sales pace since 2009.

This slump surprised experts, especially after February’s brief rebound and a rise in available homes. Families move house in spring before the school year begins, and home sales rise.

High mortgage rates are a major culprit
After dipping early in the year, the 30-year fixed-rate mortgage surged to 6.81% last week from 6.6% in early April, according to Freddie Mac.

The rise followed President Donald Trump’s tariff threats, which unsettled bond markets that tend to influence mortgage rates.

Meanwhile, the median existing-home price in March climbed to $403,700, up from $392,900 a year ago.

New home sales offered a rare bright spot, rising 7.4% in March, with their median price nearly matching existing homes—a sign builders are focusing on smaller, more affordable properties. However, many regions, especially the Northeast, still lack a new housing supply.

With mortgage applications down 12.7% in mid-April, experts warn the housing market could remain sluggish, limiting economic mobility and buyer activity this spring.