Sales of existing homes dropped 2.7 percent in March to a seasonally adjusted, annualized rate of 5.77 million units, according to the National Association of Realtors (NAR). February’s reading was also revised downward with a larger-than-usual dent, from 6.02 million units to 5.93 million.
March sales were 4.5 percent lower than the same period in 2021.
The reading is based on closings, meaning the contracts were likely signed in January and February, when mortgage rates began to rise but had not yet shot up as sharply as they did in March. The average rate on the 30-year fixed mortgage stood at 3.29 percent at the beginning of January and rose to 3.9 percent by the end of February, according to Mortgage News Daily. The 30-year fixed rate now stands at 5.35 percent.
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