WASHINGTON (Reuters) – U.S. home sales fell more than expected in March as house prices hit a record high despite some improvement in supply, and could decline further amid surging mortgage rates. Existing home sales dropped 2.7% to a seasonally adjusted annual rate of 5.77 million units last month, the National Association of Realtors said on Wednesday. The data mostly reflected the closing of contracts signed two to three months ago when the 30-year fixed-rate mortgage was below 4%. Economists polled by Reuters had forecast sales would decrease to a rate of 5.80 million units. Sales are now …