Sales of existing homes dipped 4.3 percent to a 4.19 million unit seasonally adjusted annual rate in March after an unrevised 4.38 million units in March. Sales are down 3.7 percent from March 2023. The March 2024 reading is close to the consensus of 4.18 million units in the Econoday survey of forecasters. The softening in the pace of sales closed in March reflects higher mortgage rates and higher prices.

Potential homebuyers remain sensitive to even small changes in interest rates. Sales closed in March are for contracts taken out mostly in January and February. The monthly average for a Freddie Mac 30-year fixed rate mortgage was 6.64 percent in January, 6.81 percent in February, and 6.82 percent in March.

The median price for an existing home is up 2.5 percent to $393,500 after $383,800 in February and is up 4.8 percent from a year ago. While higher prices may restrain some sales activity, NAR Chief Economist Lawrence Yun noted,"More inventory is always welcomed in the current environment," Yun added."Frankly, it's a great time to list with ongoing multiple offers on mid-priced properties and, overall, home prices continuing to rise." The month's supply of existing homes available for sale is up to 3.2 months after 2.9 in February and above the 2.7 months in March 2023.

The average number of days a home is on the market is 33 days after 38 in February, but slightly above the 29 days in March 2023. The share of first time buyers rose to 32 percent in March after falling to 26 percent in February, and above the 28 percent in March 2023.

Sales of single-family homes fell 4.3 percent in March to 3.80 million units from 3.97 million units in February and are down 2.8 percent from 3.91 million units in March 2023. Sales of condos and co-ops fell 4.9 percent to 390,000 units in March after 410,000 units in February and are down 11.4 percent from 440,000 in March 2023.

After February's jump from January's 3.92 million annualized rate to 4.38 million which the National Association of Realtors said reflected pent-up demand, existing home sales in March are expected to fall back to 4.18 million.

Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.

Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.

Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.