Existing home sales in the United States fell 3.6% from February to a seasonally adjusted annual rate of 3.98 million in March, according to the National Association of Realtors. The figure marked the lowest level of existing home sales since June.

The median home price in the U.S. was $408,800, a 1.4% increase from a year earlier. The sales decline occurred as borrowing costs remained elevated, with the average rate for a typical 30-year fixed mortgage at 6.37% in the most recent reporting period.

Mortgage rates for a typical 30-year fixed loan had dropped in January and February, falling to 5.98% before U.S. strikes on Iran began in February. Rates have increased since the strikes began. Market expectations that the Federal Reserve will continue to hold interest rates to keep inflation under control have contributed to increasing mortgage rates and reduced hopes for further rate cuts by the Fed.

Dr. Lawrence Yun, chief economist at the National Association of Realtors, said that March's sales figures were affected by a drop in consumer confidence and weakness in the U.S. jobs market. Thomas Ryan, North America economist at Capital Economics, said that indicators point to weakening housing demand following a recent jump in mortgage rates and a collapse in consumer confidence, both of which he described as knock-on effects of the Iran conflict.

Andrew Vallejo, principal listing agent at Redfin, described reluctance from both buyers and sellers. For sellers, Vallejo said, "I think that in their mind they were hoping it would be a bit of a less chaotic world this year and things would be a little bit more calm."