US existing home sales dip in March

According to the National Association of Realtors, in seasonally adjusted terms the number of existing home sales dropped at a month-on-month pace of 4.3% to reach 4.19m.

Economists had penciled-in a decline to 4.2m.

"Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves," said NAR chief economist Lawrence Yun.

"There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market."

In annual terms, sales were down by 3.7%.

The number of homes available for sales rose to the equivalent of 3.2 months' worth of sales in March, against 2.9 months' worth in the month before and 2.7 months one year earlier.

Median existing home prices were ahead by 4.8% in annual terms at $393,500.

"The fall in existing home sales in March was triggered by mortgage rates climbing back above 7% the month before," said Thomas Ryan, property economist at Capital Economics.

"Even so, transactions remain above the trough at the end of last year, consistent with our view that activity will be slightly stronger in 2024."