Sales of previously owned homes fell 1.9% in April from March to 4.1 million units, on a seasonally adjusted annualized basis, according to the National Association of Realtors. The forecast had been for a slight gain. Sales were also down from April 2023, off 1.9% from last year. These sales are based on closings, so contracts likely signed in February and March. Mortgage rates jumped at the start of February and then held around 7% for the next two months before moving even higher in April. “When we see these mortgage rates, which is a 300 basis point increase from pre-Covid pace, we are in a new territory as to how the lock-in effect will restrain home sales,” said Lawrence Yun, chief economist for the National Association of Realtors. Total housing inventory at the end of April was 1.21 million units, up 9% month to month and up 16% from…
