WASHINGTON — Sales of existing U.S. homes fell in March after a huge gain the previous month, held back partly by a sharp slowdown among the most expensive properties.
The National Association of Realtors says home sales fell 4.9% to a seasonally adjusted annual rate of 5.21 million, down from 5.48 million in February. The drop followed an 11.2 per cent gain the previous month, the largest in more than three years.
Home sales are struggling to rebound after slumping in the second half of last year, when a jump in mortgage rates to nearly 5% discouraged many would-be buyers.
Realtors expect sales to rebound in coming months. Borrowing costs have since fallen back to an average of 4.2% on a 30-year fixed mortgage. The job market also remains solid.
Christopher Rugaber, The Associated Press