US existing home sales increased less than projected in April even as affordability continued to improve, data from the National Association of Realtors showed Monday.
Sales edged up 0.2% sequentially to a seasonally adjusted annual rate of 4.02 million units last month. The consensus was for a 2% increase in a survey compiled by Bloomberg. Sales grew in the Midwest and South, but were unchanged in the Northeast. The West saw a decline.
"Despite mixed macroeconomic signals -- including a record-high stock market and historically low consumer confidence -- home sales were modestly boosted by the continued improvement in housing affordability," NAR Chief Economist Lawrence Yun said.
Last week, a survey by the University of Michigan showed that US consumer sentiment continued to fall in May as cost pressures tied to the Middle East conflict sent the measure tumbling to all-time lows.
The average 30-year fixed-rate mortgage increased to 6.33% last month from 6.18% in March, but was down from 6.73% a year earlier, the NAR said Monday, citing Freddie Mac data. "Mortgage rates are lower from a year ago, and average income growth is outpacing home price gains," Yun said.
Single-family home sales were unchanged month over month at 3.64 million units in April, while condominium and co-op sales increased 2.7% to 380,000 units, NAR data showed.
"Inventory still remains tight," Yun said. "At the same time, days on market are lengthening on average, implying that consumers are taking their time before making decisions."
The median sales price of existing homes increased 0.9% year over year to $417,700 in April, marking the 34th straight month of annual gains, according to the report.
The increase in prices last month was in line with seasonal patterns, with the rise expected to continue in May and June, Jefferies Chief US Economist Thomas Simons said in a note e-mailed to. Although recent efforts by the Trump administration to lower rates through purchases of mortgages may help improve buying conditions later in 2026, "it will take time for this to meaningfully impact the market," Simons wrote.
