US new single-family home sales fell 6.2% month-over-month in April to a seasonally adjusted annualized rate of 622,000 units, missing economists’ expectations of about 660,000 sales [1, 2, 3]. Compared with April 2025, sales dropped 11.3% [1, 3].
The median price of new homes increased 2.2% year-over-year to roughly $422,500 in April [1, 2, 3]. At the current sales pace, the supply of new homes on the market would take 9.4 months to clear, rising from 8.7 months in March [1, 2, 3]. New housing inventory also edged up slightly to 489,000 units in April from 481,000 in March [1, 2, 3].
Mortgage rates have risen sharply since late February amid geopolitical tensions involving the US, Israel, and Iran. The average 30-year fixed mortgage rate increased from 5.98% in late February to 6.46% in early April, then averaged 6.30% by the month’s end [1]. The housing market has been constrained by these higher rates and geopolitical uncertainties since February [1, 2, 3].
In April, sales declined in the Northeast, South, and Midwest regions but rose slightly in the West [1]. Most new homes sold were priced between $300,000 and $799,999. Sales dropped for homes under $300,000 but rose in the $400,000 to $500,000 range [1, 2]. Residential building permits and single-family housing starts also declined during the month [1]. Residential investment, including new construction and broker commissions, has contracted for five consecutive quarters through April [1].
Gold prices dipped slightly on the day the April sales data was released, reflecting economic uncertainty linked to the housing market trends [3]. Analysts speculate that the gold market may seek new support amid this uncertainty.
The next key data point will be the May housing starts and building permits reports, expected in the coming weeks, which will provide further insight into homebuilding activity amid rising mortgage costs [1].
