Sharp drop in housing contract activity in April due to high rates and volatility

From Yahoo Finance: 2025-05-29 10:33:00

Pending home sales dropped 6.3% in April to a reading of 71.3, well below economists’ expectations. Nationwide, contract activity fell 2.5% year over year, with decreases in all regions except the Midwest. Although housing inventory has increased, prices are high, and mortgage rates above 6% are deterring buyers.

Mortgage rates soared to nearly 7% in April after President Trump’s tariff announcements, causing investor panic and stock market drops. Pending home sales are an early indicator of market activity, showing the impact of rising rates and economic uncertainty on potential buyers. Lower mortgage rates are crucial for market recovery.

Claire Boston, a Senior Reporter at Yahoo Finance, covers housing, mortgages, and home insurance. The volatile mortgage rates and tariff uncertainty in April contributed to a 6.3% drop in pending home sales, signaling a challenging housing market. Buyers are hesitant due to high prices and mortgage rates above 6%.



Read more at Yahoo Finance: Housing contract activity dropped sharply in April as volatility and high rates reigned