U.S. New-Home Sales Declined in April as Demand Fell in West

U.S. purchases of new homes fell in April, reflecting a setback in the western part of the country and indicating rising borrowing costs and property prices may limit the market’s progress, according to government data released Wednesday.

Mortgage rates at a seven-year high and elevated home prices may be prompting at least some potential buyers to hold off. A tempering of demand at a time when costs of construction supplies are surging would represent an additional challenge for the homebuilding industry. So far, though, the pace of sales remains firm.