E
xisting home sales declined in April, weighed down by economic uncertainty and high mortgage rates. Key points:

    * Home sales dropped 0.5% from March and 2% from a year ago, with the National Association of Realtors reporting a seasonally adjusted annual rate of 4 million.

    * Despite this decline, existing home prices continued to rise, reaching an all-time high for April at $414,000.

    * Regional variations in home prices are becoming more pronounced, with increases in the Northeast and Midwest, but decreases in the West and South.

    Mortgage rates have ticked back up amid concerns about rising U.S. debt and a recent credit downgrade. The 30-year fixed-rate mortgage jumped to over 7%, following Moody's announcement on May 16.

    Inventory continues to rise, with new listings up 8.4% year-over-year and the total number of homes for sale hitting a nearly five-year high. This could lead to lower prices by the end of 2025, according to Redfin economists.

    However, a dip in prices may not be enough to stimulate demand if mortgage rates remain high. As NAR Chief Economist Lawrence Yun noted, "a meaningful decline in mortgage rates will help release this pent-up demand."