New US Home Sales Pull Back Sharply in April Amid Affordability Woes

Sales of new U.S. single-family homes fell sharply in April, reversing a gain in March, as elevated mortgage rates and high prices continued to throttle buyer demand. The Commerce Department’s report on Thursday showed the decline exceeded economists’ forecasts, underscoring the housing market’s ongoing struggles. The pullback comes as the average 30-year fixed mortgage rate remains above 6.5%, sidelining many potential buyers. Builders have ramped up sales incentives and price cuts, but the inventory of unsold homes has risen, adding pressure. The data could reinforce expectations for slower economic growth and influence the Federal Reserve’s path on interest rates.