Sales of previously owned U.S. homes dropped in March to their slowest pace in nine months. Easing mortgage rates and a slight increase in homes for sale were not enough to encourage buyers during the traditional peak of the spring housing season.
Existing-home sales fell 3.6% from February to a seasonally adjusted annual rate of 3.98 million units, according to the National Association of Realtors (NAR), which released the data on April 13, 2026. That figure was also down 1% from March 2025, with declines in the Northeast and Midwest. Economists had expected a stronger pace of about 4.06 million units.
“Lower consumer confidence and softer job growth continue to hold back buyers,” said Lawrence Yun, NAR’s chief economist, in a statement. A key measure of Americans’ short-term outlook for income, business conditions, and jobs fell to 70.9 in March. That reading has now stayed below 80 — a level often linked to recession risks — for 14 straight months.
Home sales have remained stuck near a 4-million annual pace since 2023. That is far below the historical average of about 5.2 million units per year. The housing market has struggled since 2022, when mortgage rates began rising sharply from their low levels during the pandemic. Sales hit 30-year lows last year and have stayed weak so far in 2026, with drops in both January and February compared with the previous year.
Despite fewer sales, home prices kept climbing. The national median sales price for existing homes rose 1.4% from a year earlier to $408,800 in March — the highest March price on record since data began in 1999. Prices have now increased year-over-year for 33 consecutive months. Limited inventory has helped support higher prices, even as sales remain sluggish. There were 4.1 months of supply on the market in March.
The broader housing slump began when mortgage rates started climbing in 2022. In recent months, rates had begun to ease, which lowered borrowing costs for buyers. Homes sold in March would typically have gone under contract in January or February, when the average 30-year fixed mortgage rate dipped as low as 5.98% — the cheapest level in three and a half years.
However, mortgage rates have climbed again since the war with Iran began. The conflict has driven up energy prices and raised fears of higher inflation. That pushed up yields on the 10-year U.S. Treasury, which lenders use as a benchmark for setting home loan rates. Last week, the average 30-year mortgage rate stood at 6.37%, according to Freddie Mac.
Yun lowered his forecast for 2026 existing-home sales because of the recent rise in rates. He now expects sales to increase just 4% for the full year, down from his earlier projection.
More homes are now listed for sale than a year ago in many areas, and price growth has slowed or even declined in some metro regions. Still, overall inventory remains tight by historical standards, which continues to put upward pressure on prices. With consumer confidence low and borrowing costs rising once more, many potential buyers appear to be holding off, leading to a disappointing start to what is usually the busiest time of year for home purchases.
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