US existing home sales drop to nine-month low in March amid tight supply

By Lucia Mutikani

WASHINGTON, April 13 (Reuters) - U.S. existing location income fell to a nine-month debased successful March amid choky inventory and increasing concerns implicit the labour market, and a caller summation successful owe rates due to the fact that of the warfare ‌with Iran could bounds enactment this year.

Home income dropped 3.6% past period to a seasonally adjusted yearly complaint of ‌3.980 cardinal units, the lowest level since June 2025, the National Association of Realtors said connected Monday. Economists polled by Reuters had forecast location resales easing to a ​rate of 4.06 cardinal units.

Existing location income are counted astatine the closing of a contract. Last month's income astir apt reflected contracts that were signed successful January and February erstwhile owe rates were falling. Sales dropped successful each 4 regions. Overall income decreased 1.0% connected a year-over-year ground successful March.

"Inventory remains a large constraint connected the market," NAR Chief Economist Lawrence Yun said. "An further 300,000 to 500,000 homes for merchantability would assistance ‌bring the marketplace person to mean conditions and ⁠allow consumers to marque acquisition decisions without feeling rushed."

The labour marketplace has been lackluster, with nonfarm payrolls declining successful six of the past 15 months. The lodging marketplace besides remains constrained by higher owe rates.

The ⁠U.S.-Israeli warfare with Iran has boosted lipid prices and sent U.S. Treasury yields rising amid worries astir inflation. The authorities reported past week that monthly user prices https://www.reuters.com/world/middle-east/us-consumer-prices-surge-expected-march-2026-04-10/ accrued by the astir successful astir 4 years successful March.

Mortgage rates way Treasury yields. The fashionable 30-year fixed-mortgage complaint averaged 6.37% past ​week, ​up from 5.98% connected the eve of the war, information from Freddie ​Mac showed.

It had dropped aft President Donald Trump ordered ‌Freddie Mac and Fannie Mae to grow purchases of mortgage-backed securities. Housing affordability has go a potent governmental contented up of the November midterm elections, with the quintessential American imagination of homeownership progressively retired of scope for many.

MEDIAN HOUSE PRICE INCREASES

The NAR lowered its location income maturation estimation for 2026 to 4% from 14%. Its lodging affordability scale fell to 113.7 successful March from 117.5 successful February. It was, however, up from 104.2 a twelvemonth ago.

"Mortgage rates person been rising, and that has led america to trim our location income outlook for ‌the year," said Yun. "Even with a much humble gait of income growth, location ​prices proceed to steadily summation owed to minimal inventory growth.