New U.S. single-family home sales fell in April as elevated mortgage rates and affordability pressures continued weighing on buyers, according to a report released Thursday by the U.S. Census Bureau.

New home sales declined 6.2% month-over-month to a seasonally adjusted annual rate of 622,000 units in April and were 11.3% below the same period a year earlier.

The decline followed gains in February and March after winter weather disruptions earlier this year. Sales decreased across the Northeast, South and Midwest, while the West recorded an increase.

Higher borrowing costs remained a key challenge for prospective buyers. Freddie Mac data showed the average 30-year fixed mortgage rate averaged 6.30% at the end of April, while rates have continued moving higher in recent weeks.

Inventory Builds As Sales Slow

The Census Bureau reported that new-home inventory increased to 489,000 units in April from 481,000 units in March.

At the current sales pace, supply on the market rose to 9.4 months from 8.7 months in the prior month, indicating a larger stock of homes available for sale.

The median sales price of a new home increased 2.2% year-over-year to $422,500 in April. Most new homes sold during the month were priced between $300,000 and $799,999.

Higher inventory levels coincided with elevated borrowing costs and affordability pressures across the housing market.

Affordability Pressures Persist

The latest data adds to broader signs of strain across the U.S. housing market.

Earlier this month, the National Association of Realtors reported that existing-home sales rose just 0.2% in April to a seasonally adjusted annual rate of 4.02 million units, while the median existing-home price climbed to a record April high of $417,700.

Industry economists have continued to point to affordability challenges as a major obstacle for buyers. The National Association of Realtors recently lowered its 2026 home sales growth forecast, citing affordability pressures and economic uncertainty.

Mortgage rates have also remained elevated. Earlier this month, the average U.S. 30-year fixed mortgage rate climbed to its highest level since July 2025, renewing concerns that higher borrowing costs could further limit housing demand during the peak spring selling season.