Sales of previously owned US homes fell in March to the lowest since June, showcasing the challenges facing the housing market as it heads into the key spring selling season.
Contract closings decreased 3.6% to an annualized 3.98 million, according to National Association of Realtors data out Monday. That was below the median estimate in a Bloomberg survey of economists.
The report highlights the different ways in which the war in Iran is impacting the US economy. Mortgage rates have climbed substantially since the conflict started, adding to ongoing affordability issues facing the housing sector and risking any recovery in the busiest season of the year for sellers.
READ MORE:
The NAR also slashed its 2026 existing-home sales forecast to 4%, from 14% previously. "Mortgage rates have been rising, and that has led us to trim our home sales outlook for the year," NAR Chief Economist Lawrence Yun said in a statement.
The NAR report showed the median selling price rose 1.4% from a year earlier in March, to $408,800. The inventory of previously owned homes edged up to a four-month high but remains historically depressed.
Contract signings declined across regions, according to the NAR. Sales in the Northeast slid to the lowest on record in data going back to 1999, while those in the Midwest matched the weakest pace since 2011.
First-time buyers continued to represent about one-third of purchasers.
Housing affordability has been a key issue ahead of November's midterm elections. President Donald Trump is attempting to invigorate the housing market with a series of initiatives, including proposing
