Tight inventory pushed existing home sales down to a seven-month low in March. Indeed, the number of homes for sale is at record lows and this will continue to constrain home sales this year. What’s more, with mortgage rates likely to rise to 4.0% by the end of the year, worsening affordability will weigh on demand. We therefore expect sales will fall further over the coming months, ending 2021 at around 5.6m annualised.
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