March Home Sales Jump—But Can It Last?

March saw a surprising jolt in the housing market as new home sales surged by 7.4% compared to the previous month, well above expectations. That uptick also marked a 6% jump over the same time last year. The fuel behind this sudden rise? A sharp drop in mortgage rates that gave buyers a temporary window of affordability.

But here's the kicker—just as quickly as rates dropped, they’ve shot back up. By April, mortgage rates climbed back to the dreaded 7% level. And with that, the good vibes in the housing market might be short-lived. We’re already seeing the fallout in mortgage applications, which have nosedived in the last two weeks. That kind of quick reversal makes it hard for anyone to feel stable, especially homebuyers hoping to catch a break.

And it’s not just about numbers. Homebuyer sentiment is still in the dumps, lingering at some of the lowest levels in recent memory. People want to buy homes, but uncertainty around rates and the broader economy makes that dream feel shaky. It's like trying to plan a road trip while the map keeps changing.

In summary, I’d say March gave us a glimpse of what’s possible when affordability improves—but April is a reminder of how fragile those moments are. Unless rates settle in a more buyer-friendly range, we may see this momentum fade just as fast as it appeared.

Source Inspiration: ZeroHedge.