US new home sales drop 6% in April as mortgage rates rise

Sales of new single‑family homes in the United States fell 6.2% in April, reaching 622,000 units and marking the lowest level in four years. The decline came as the average 30‑year fixed mortgage rate climbed to around 6.5%, its highest in nine months, after rising sharply amid higher interest rates linked to geopolitical tensions.

The median price of a new home rose 2.2% year‑over‑year to $422,500, while inventory increased to 489,000 units, extending the time needed to clear the market to about 9.4 months. Housing starts and residential investment also slipped, with single‑family starts down 9% from March. Economists noted that rising mortgage costs, higher grocery and energy prices, and broader economic uncertainty were discouraging buyers.

“While the typical mortgage payment a new buyer would face remains improved from year‑ago levels, other household expenses have continued to rise, and inflation‑adjusted disposable income is falling,” said Zillow senior economist Orphe Divounguy.