U.S. home sales fell in April as mortgage rates rose and the supply of homes on the market remained low, according to a National Association of Realtors report.
Existing-home sales, completed transactions on previously owned homes, fell 2.6% in April from a year earlier to a seasonally adjusted annual rate of 5.41 million. The median price of an existing home rose 14.8% from a year earlier to $375,200.
Rising mortgage rates drove the decline in sales. The average rate on a 30-year fixed-rate mortgage rose to 5.27% in April, the highest since February 2011.
The supply of homes on the market also remained low, with just 1.17 million homes available at the end of April, down 16.6% from a year earlier.
The rising mortgage rates and low supply make it more difficult for buyers to find homes. The number of homes for sale that were under contract fell 10.1% in April from a year earlier.
The housing market is expected to remain challenging in the coming months. The Federal Reserve is expected to continue raising interest rates to combat inflation, which will likely put further upward pressure on mortgage rates. The supply of homes on the market is also expected to remain low as builders struggle to keep up with demand.
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