Existing-Home Sales Rose 0.2% in April

Existing-home sales in the United States rose 0.2% in April from March to a seasonally adjusted annual rate of 4.04 million, according to data released Tuesday. The modest gain extended a period of weak sales that began after mortgage rates rose sharply in 2022.

Sales remain well below the pace seen before the pandemic. Higher prices combined with elevated borrowing costs have kept many prospective buyers on the sidelines.

Mortgage rates have held above 6.5% in recent weeks after declining from last year's peaks. The persistence of higher rates has limited the supply of homes coming onto the market, as homeowners with lower-rate mortgages hesitate to sell. Inventory levels have risen gradually over the past year but remain below historical averages in many markets.

The combination of low supply and high financing costs has contributed to the extended slump in transactions. Regional variations showed sales increasing in the Midwest and South while declining in the Northeast and West. The report did not provide further breakdown by metropolitan area.

The data come as policymakers monitor the housing sector's contribution to broader economic activity. Home sales and related spending influence employment in construction, real estate services and retail sectors. Further readings on mortgage rates, new construction and consumer confidence are scheduled in the coming weeks.

Market participants will assess whether the small April increase signals any sustained recovery or remains an isolated uptick.