Higher mortgage rates and concern over the broader economy are making for a weak start to the all-important spring housing market.
Sales of previously owned homes in March fell 5.9% from February to 4.02 million units on a seasonally adjusted annualized basis, according to the National Association of Realtors. That’s the slowest March sales pace since 2009.
Sales were 2.4% lower than in March 2024 and slumped across all regions month to month. They fell hardest in the West, the priciest region of the country, down more than 9%. The West, however, was the only region to see a year-over-year gain, due to strong activity in the Rocky Mountain states, where job growth is strong.
This count is based on closings, therefore contracts likely signed in January and February, when the average rate on the popular 30-year fixed mortgage was over 7%. It did not fall solidly below 7% until Feb. 20, according to Mortgage News Daily.
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