US existing home sales undershoot forecasts in March

Sales of second hand homes in the US undershot came in below forecasts in March due to a mix of higher prices, higher mortgage rates and a dearth of available supply.

According to the National Association of Realtors, existing home sales in the US declined at a month-on-month pace of 3.7% to reach an adjusted annual rate of 6.01m (consensus: 6.17m).

Versus a year ago meanwhile, sales were 12.3% higher.

"Consumers are facing much higher home prices, rising mortgage rates, and falling affordability, however, buyers are still actively in the market," said Lawrence Yun, NAR's chief economist.

"The sales for March would have been measurably higher, had there been more inventory," he added.

"Days-on-market are swift, multiple offers are prevalent, and buyer confidence is rising."

As well, Yun clarified that mortgage rates had only ticked higher and pointed to "encouraging" dynamics of more supply and demand in the sector.

Median existing home prices were up 17.2% year-on-year in March at $329,100.