April home sales disappoint as higher mortgage rates weigh on buyers

Sales of previously owned homes in April 2026 remained nearly flat, rising by 0.2% month-over-month, according to data from the National Association of Realtors. The result fell significantly short of analyst expectations, which had projected a monthly gain of more than 3%.

On a seasonally adjusted, annualized basis, total sales for the month reached 4.02 million units. Year-over-year, the volume of sales in April 2026 remained unchanged compared to April 2025.

The stagnation in sales coincided with a sharp increase in borrowing costs. According to Mortgage News Daily, the average rate on 30-year fixed mortgages ended March 2026 in the high 5% range before spiking in April 2026, a move attributed to the start of the U.S.-Israel war with Iran.

Despite the volatility in mortgage rates, the median price of a home sold in April 2026 was $417,700, representing a 0.9% increase from the previous year.

Lawrence Yun, the chief economist for the National Association of Realtors, noted that a combination of macroeconomic factors influenced the market. While consumer confidence remained historically low and the stock market reached record highs, some buyers were supported by improvements in overall affordability.

Yun stated that mortgage rates are lower from a year ago, and average income growth is outpacing home price gains, which provided a modest boost to sales activity.

Inventory and Market Supply

Housing inventory saw a 5.8% increase from March 2026 to April 2026. However, compared to April 2025, inventory rose by only 1.4%, resulting in a 4.4-month supply of homes.

A balanced market between buyers and sellers is typically characterized by a 6-month supply. The current 4.4-month level indicates that the market remains tight.

Yun emphasized the need for a more significant increase in available homes to stabilize the market.

We really need to see 30% growth in inventory, but we are not seeing that,

Lawrence Yun, National Association of Realtors

The scarcity of inventory continues to drive certain competitive behaviors, although the intensity has diminished compared to previous years. Multiple-offer scenarios are still occurring, but the average number of days a home stays on the market is increasing, suggesting that consumers are becoming more cautious and taking more time to make purchasing decisions.

This combination of limited supply and cautious buyer behavior contributed to the continued upward pressure on home prices, as evidenced by the 0.9% annual increase in the median sales price.