US Home Sales Plummet to Nine-Month Low

U.S. existing home sales fell to their weakest level in nine months in March 2026, as higher borrowing costs and limited listings weighed on demand, according to industry data released Monday.

The National Association of Realtors said sales dropped 3.6% to a seasonally adjusted annual rate of 3.980 million units. That was the lowest pace since June 2025 and came in below economists’ expectations for 4.06 million units.

Mortgage rates moved higher over the period, adding pressure to affordability. The average 30-year fixed-mortgage rate was 5.98% in late February, rose to 6.46% by early April, and averaged 6.37% last week.

Officials and market participants linked the rate increase to rising U.S. Treasury yields. The move in yields was attributed to inflation concerns tied to the U.S.-Israeli conflict with Iran, which the source material said influenced market pricing and borrowing costs.

Demand weakened broadly across the country. Sales declined in all four U.S. regions, and total transactions were down 1.0% from a year earlier in March, the NAR reported.

On the supply side, listings improved but remained constrained relative to demand. The inventory of existing homes increased 3.0% to 1.36 million units, equal to a 4.1-month supply at the current sales pace.

Prices, however, continued to rise despite the slowdown in turnover. The median existing home price increased 1.4% from a year earlier to $408,800, which the NAR said was the highest median price for any March.

Sentiment indicators also deteriorated. Consumer sentiment hit a record low in April, according to the source material, adding another headwind by affecting purchasing power and household wealth perceptions.

Looking ahead, the NAR adjusted its outlook for 2026. The group revised its 2026 home sales growth estimate down to 4% from an initial 14%, reflecting the combination of affordability constraints, rate volatility, and the market’s limited ability to expand supply quickly.

For global investors and policymakers, the report underscores how geopolitical developments can transmit into domestic housing through bond yields and mortgage rates. The same dynamics can influence cross-border capital flows into U.S. Treasuries and shape risk pricing across global markets, even as the immediate data points remain centered on U.S. housing activity.