Average mortgage rates moved up nearly half a percent in April. As you’d expect, that hurt new and existing home sales. But rates have fallen since then thanks to cooler inflation, employment and retail sales figures. Will the move back to near 7% be enough to put the groove back in Spring sales?

Rates hold around 7%

The slower existing AND new home sales that we saw in April reflected 30-yr mortgage rates closer to 7.5%. But in the past few weeks, rates have dropped back closer to 7% on cooler inflation, employment, and retail sales data. Will these lower rates be enough to boost May sales and get the Spring selling season back on track? [Source: Mortgage News Daily]

Home sales slow

Higher mortgage rates rained on Spring sales. Existing (previously owned) home sales dropped 1.9% month-over-month to 4.14 million units annualized in April. That was the 2nd-straight month of declines. However, the median sales prices rose 3.7% MoM to $407,600, as higher-end home sales rebounded. [Source: NAR]

But competition rises

Like it does every year at this time, buyer competition levels are rising. 68% of the homes sold in April were on the market less than a month (up from 60% in March). The average home sold in April received 3.2 offers (up from 3.1 in March and 2.7 in February). Defying high home prices and mortgage rates, first-timers made up 33% of the purchases in April. [Source: NAR]

Local Market Trends

As of Friday, May 31, 2024

Area	Median Price	Active Listings	New Listings – 5 days	Median Days on Market
Scottsdale, AZ	$1,112,500 -0.1%	1946 0%	94	57 -0.1%
Gilbert, AZ	$689,900 0.1%	502 0.1%	53	30 -0.3%
Phoenix, AZ	$515,000 -0.1%	2787 -0.2%	266	40 -0.2%
Mesa, AZ	$514,950 0.1%	986 0%	121	35 -0.2%