Home sales just posted their biggest monthly fall since 2022

Npr - Apr 24th, 2025

The U.S. housing market experienced a surprising downturn in March, with existing home sales falling 5.9% from February, marking the largest month-to-month decline since November 2022. This decline contradicts expectations for the spring market, which typically sees heightened activity. The drop in sales is attributed to rising mortgage rates, which climbed to an average of 6.81% for a 30-year fixed-rate mortgage, influenced by recent tariff threats from President Trump. Despite an increase in housing inventory, the higher mortgage rates are dissuading potential buyers, leading to a sluggish market. The median price for existing homes continued to rise, reaching $403,700, further dampening buyer enthusiasm.

In contrast, new home sales are showing growth, with a 7.4% increase from February and a 6% rise compared to the previous year. This growth is driven by homebuilders focusing on smaller, more affordable homes, leading to a rare price parity with existing homes. The current housing trends indicate a potential shift in the market dynamics, as high mortgage rates and economic uncertainty curb buyer activity. The situation suggests broader implications for economic mobility, with fewer people moving up the property ladder, reflecting a stagnation in economic status among Americans.

Housing Market Mortgage Rates Freddie Mac President Trump U.S. Census Bureau U.S. Department Of Housing And Urban Development Existing Home Sales New Home Sales Economic Mobility Oliver Allen Pantheon Macroeconomics Mortgage Bankers Association

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RATING

7.2

Fair Story

Consider it well-founded

The article provides a comprehensive overview of the current state of the housing market, accurately reporting on the decline in existing home sales and the rise in new home sales. It effectively highlights the impact of mortgage rates and economic conditions on these trends, making it a timely and relevant piece. While the article is clear and well-structured, it could benefit from improved source attribution and transparency in its methodology. Additionally, incorporating more diverse perspectives and exploring the broader implications of the trends discussed could enhance its engagement and impact potential. Overall, the article is a valuable resource for readers interested in understanding the complexities of the housing market, but there is room for improvement in certain areas to increase its depth and influence.

Accuracy

The article is largely accurate in its reporting of the housing market trends, including the decline in existing home sales and the rise in new home sales. It correctly cites a 5.9% decrease in existing home sales from February to March, consistent with data from the National Association of Realtors. The reported year-over-year decline of 2.4% is also accurate. The article accurately states the average mortgage rate for a 30-year fixed-rate mortgage as 6.81%, which aligns with market trends. However, there is a minor error in the year-over-year comparison, as it refers to sales from March 2024, which seems to be a typographical error. Overall, the factual claims are well-supported by external data, but the article could improve by correcting this minor inaccuracy.

Balance

The article provides a balanced view of the housing market by discussing both the decline in existing home sales and the rise in new home sales. It explores the impact of mortgage rates on the market and includes perspectives from economists such as Oliver Allen. However, the article could benefit from additional viewpoints, particularly from homebuyers or real estate agents who are directly affected by these trends. While it touches on the broader economic implications, such as reduced economic mobility, it could delve deeper into regional variations and other socioeconomic factors influencing the market.

Clarity

The article is generally clear and well-structured, making it easy for readers to follow the narrative about the housing market's current state. It logically presents the decline in existing home sales followed by the contrasting rise in new home sales. The language is straightforward, and the use of specific figures helps clarify the trends being discussed. However, the article could improve clarity by avoiding the typographical error regarding the year-over-year comparison and providing more detailed explanations of complex economic concepts for a general audience.

Source quality

The article cites credible sources such as the National Association of Realtors and Freddie Mac for its data on home sales and mortgage rates. It also references insights from Oliver Allen, a senior economist, which adds depth to the analysis. However, the article lacks direct quotes or detailed attributions for some of its claims, such as the impact of President Trump's tariff threats on mortgage rates. Including more direct references to primary data sources or expert interviews would enhance the credibility and reliability of the reporting.

Transparency

The article provides some context for the housing market trends, such as the influence of mortgage rates and inventory levels. However, it does not fully explain the methodology behind the reported statistics, such as how the seasonal adjustments are calculated or the specific data sources used. The article could improve transparency by detailing the basis for its claims and any potential biases in the data. Additionally, more information on the economic models or forecasts mentioned would help readers understand the underlying assumptions.