MNI: US March Existing Home Sales Fell 4.3% To 4.19M

U.S. existing home sales fell 4.3% in March to a seasonally adjusted annual rate of 4.19 million and is down 3.7% from a year ago, the National Association of Realtors said Thursday. Markets had expected a slightly lower 4.16 million.

Existing home sales have been "stuck in the 4 million range" for several months as mortgage rates and inventory levels "have not moved all that much," NAR chief economist Lawrence Yun told reporters in a call. His previous forecast that sales would rise past 5 million by the end of the year is now looking more uncertain with mortgage rates rising on the recent jump in 10-year Treasury yields and more stubborn inflation, Yun said. Six million jobs created since the height of the pandemic should translate to roughly a 600,000 higher pace of existing home sales, but depressed inventory and other factors have made conditions difficult, he said. (See: MNI INTERVIEW: Fed Only Likely To Cut Once This Year- Giannoni)

Housing inventory in March was 1.1 million, a 14.4% improvement from a year ago but still far below typical pre-Covid levels of around 1.7 million, Yun said.