U
S home sales declined in April, as high mortgage rates and rising prices deterred potential buyers during the typically busiest time of year for the housing market. Existing home sales dropped 0.5% from March to a seasonally adjusted annual rate of 4 million units, according to the National Association of Realtors.

    This marks the slowest April sales pace since 2009, with sales also falling short of economists' expectations of 4.10 million. Compared to last year's April sales, this represents a 2% decline. Home prices continued their upward trend for the 22nd consecutive month, but at a slower rate.

    The national median sales price reached $414,000 in April, an all-time high for that month. Lawrence Yun, NAR's chief economist, attributed the market slump to affordability issues and higher mortgage rates. The average 30-year mortgage rate has hovered around 7% this year, with its lowest point at 6.62% five weeks ago.

    The elevated mortgage rates have made it difficult for many would-be homebuyers to afford homes, despite a significant increase in the inventory of unsold homes. There were 1.45 million unsold homes at the end of April, a 9% increase from March and 20.8% higher than last year's April.

    This translates to a 4.4-month supply at the current sales pace, up from 3.5 months in April last year. A balanced market typically requires a 5-6 month supply, indicating that buyers still have more negotiating power than sellers.