The spring homebuying season has begun on a slow note as potential homebuyers grapple with increased mortgage rates and escalating home prices. According to the National Association of Realtors, sales of previously owned U.S. homes dropped by 4.3% in March to a seasonally adjusted annual rate of 4.19 million, marking the first monthly decline since December. Despite this decrease, the sales figures slightly exceeded economists' expectations.
The surge in mortgage rates in February and March has contributed to the sluggishness in the housing market. The average rate on a 30-year mortgage recently surpassed 7%, the highest level since late November, as reported by Freddie Mac. This trend has posed challenges for homebuyers during the traditionally busy spring homebuying season.
