Sales of previously-owned homes in the United States fell in March as mortgage rates climbed to a 12-year high, leading mortgage refinance demand to plunge by an annual 68 percent while house prices hit a new record.
Total existing-home sales fell 2.7 percent over the month and 4.5 percent over the year in March, marking the second consecutive month of declines, according to the National Association of Realtors.
“The housing market is starting to feel the impact of sharply rising mortgage rates and higher inflation taking a hit on purchasing power,” Lawrence Yun, NAR’s chief economist, said in a statement. “Still, homes are selling rapidly, and home price gains remain in the double-digits.”
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