The spring housing market is faltering instead of booming, with existing home sales in March dropping 5.9% from February — the biggest monthly decline since November 2022 — and down 2.4% from a year ago.

Despite increased inventory and expectations for a busy season, high mortgage rates (averaging 6.81%) and rising home prices continue to dampen demand.

Analysts say the market remains subdued, with sales likely to stagnate as buyers are deterred by the gap between new and existing mortgage rates, NPR has reported.

The slowdown may also reflect deeper issues like reduced economic mobility.

Written by B.C. Begley