US Existing Home Sales Rise Slightly, Pressured by Yields and Mortgage Rates
Existing home sales in the US rose slightly by 0.2% in April 2026 to an annualized pace of 4.02 million units, recovering from a seven-month low in the previous period. However, this figure was slightly below the consensus of 4.05 million units, amid pressure from higher mortgage rates after surging energy prices pushed up long-dated Treasury yields.
Regionally, weaker sales in the West were the main drag, falling 2.6% to 750,000 units. A 2.2% increase in the Midwest to 950,000 units helped offset this but was not enough to push aggregate results beyond expectations.
On the supply side, inventory rose 5.8% to 1.47 million units, equivalent to 4.4 months of supply. Rising inventory typically provides space for buyers and can ease price pressures, but the transmission of higher yields to mortgage rates remains a factor that could potentially limit the demand recovery.
The National Association of Realtors (NAR) assessed April's results as relatively optimistic, citing gradual improvements in affordability. NAR Chief Economist Lawrence Yun said sales were "moderately boosted" by improved affordability, with mortgage rates lower than a year ago and median income growth reportedly outpacing home price increases, despite mixed macroeconomic signals, including a high stock market and low consumer confidence.
Source: Newsmaker.id
