Home sales and building slump in the face of uncertainty
In April 2025, U.S. existing home sales fell to a seasonally adjusted annual rate of 4.0 million units, marking the slowest April since 2009 and missing economists’ expectations. This decline is caused by high mortgage rates averaging around 6.89%, a surplus of sellers over buyers, and lingering economic uncertainty. Additionally, builder confidence dropped to 40 in April due to rising material costs and policy uncertainties.
According to NPR, “In a May survey of builder confidence conducted by Wells Fargo and the National Association of Home Builders, home builder sentiment dropped to a level last seen in November 2023.”
