U.S. existing home sales unexpectedly fell in April despite a temporary drop in mortgage rates and increased supply, and could remain lackluster this year amid rising economic uncertainty.

U.S. new-home sales climbed to their highest level since February 2022, surging 3.3% to a 743,000 annual rate since last year. According to data released Friday by the U.S. Census Bureau and the Department of Housing and Urban Development,

US sales of previously owned homes unexpectedly dropped in April to the slowest pace in seven months, restrained by ongoing affordability constraints and highlighting a lackluster start to the key spring selling season.