U.S. home sales edge up, but high rates keep buyers away

Housing is still stuck in a painful split-screen: more homes are selling, but many would-be buyers are still shut out by borrowing costs, elevated prices and stubbornly weak affordability. Existing-home sales rose just 0.2% in April to a seasonally adjusted annual rate of 4.02 million units, short of economists’ expectations, and the small gain did little to change the broader picture of a market that feels frozen to many households.

The latest numbers from the National Association of Realtors showed unsold inventory climbed 5.8% to 1.47 million units, or 4.4 months of supply. That is more than a year ago, but still not enough to reset the market. Lawrence Yun has argued that an additional 300,000 to 500,000 homes for sale would help bring conditions back toward normal. Even with more listings, the market is not oversupplied. It remains trapped between limited supply and too little buying power.

Prices are still pressing against households. The median existing-home sales price rose 0.9% from a year earlier to $417,700, the highest April median on record. That increase was slower than in 2025, but it still leaves buyers facing record-high levels for the month. In March, homes stayed on the market a median 41 days, up from 36 days in March 2025, a sign that sellers are waiting longer as buyers hesitate. First-time buyers made up 32% of March sales, unchanged from a year earlier, showing how hard the market remains for newcomers trying to break in.

Ben Ayers, senior economist at Nationwide, said homes are lingering because there is not enough buyer interest and that affordability has been hit hard by the recent spike in mortgage rates. Freddie Mac’s 30-year fixed mortgage rate averaged 5.98% on Feb. 26, climbed to 6.38% by March 26 and averaged 6.37% for the week ending May 7. Those moves matter because April sales likely reflected contracts signed in February and March, meaning the latest rate pressure is only beginning to feed through the market.

Even in a sluggish environment, competition has not disappeared. Homes listed in March received an average of 2.2 offers, and about 18% sold above list price. The market is still moving, just unevenly and at a pace that leaves many families on the sidelines. The next pending home sales report, due May 19, will offer an early look at whether high rates and weak affordability kept demand subdued into the spring.