Key facts
- U.S. single-family home prices fell 0.1% in April, down from a revised 0.2% rise in March.
- The annual increase in home prices was 2.0% through April.
- Mortgage rates have risen approximately 50 basis points since late February.
- A housing shortage of about 1.2 million homes is estimated nationally.
- Congress passed a bill aimed at improving housing affordability.
U.S. single-family home prices experienced a slight monthly decrease in April, falling by 0.1% after a revised 0.2% increase in March, according to data from the Federal Housing Finance Agency. This dip occurred despite a persistent shortage of homes for sale, estimated by the National Association of Home Builders to be around 1.2 million units.
The rise in inflation, partly influenced by geopolitical events boosting oil prices, has contributed to higher mortgage rates. The average rate for a 30-year fixed mortgage has climbed approximately 50 basis points since late February, reaching 6.49% last week. However, an outright decline in house prices is not anticipated, as prices still rose 2.0% year-over-year through April.
Regional price variations were noted, with declines in the Mountain, East South Central, Pacific, East North Central, and South Atlantic regions. Conversely, New England and the Middle Atlantic regions saw price increases. All nine census divisions reported year-over-year price gains, with the East North Central region showing the largest increase at 4.4%.
In parallel, the U.S. Congress recently passed legislation aimed at improving housing affordability, which includes measures to restrict single-family homeownership by investment firms and streamline environmental reviews for construction. However, President Donald Trump has withheld his signature, seeking concessions on other legislative priorities.