US home sales are slowing down and home prices are falling — bad for sellers, builders, and people who depend on rising home values, but good for buyers willing to wait.

• April home sales came in weaker than expected, and mostly only cheaper homes are selling.
• Mid-range and luxury homes are sitting on the market, which makes the average price look stronger than it really is.
• Mortgage rates jumped during the Iran conflict because government bond yields rose, and banks use those to set home loan rates.
• Rising insurance costs and property taxes are making it even harder for people to afford homes.
• National home prices are down about 10% from the 2022 peak, close to the total drop during the 2008 housing crash.

Outlook: If interest rates do not fall soon, home sales and prices will likely keep dropping, especially in the luxury market.