Home sales rise slightly in May, but high mortgage rates continue to impact market

From Yahoo Finance: 2025-06-23 10:46:00

US existing home sales saw a small uptick in May, rising 0.8% to a rate of 4.03 million homes. Sales are down 0.7% from a year earlier. High mortgage rates continue to be a hurdle for buyers. The median home price hit a record high of $422,800. Housing inventory is up 6.2% to 1.54 million homes.

Sales were strongest in the Northeast and Midwest, with the Northeast reporting a 4.2% increase in sales from April. In the South, sales rose 1.7%, while the West saw a 5.4% decline. The slow spring market is attributed to high mortgage rates. Economists had expected a drop in sales, so the slight increase is a positive sign.

NAR Chief Economist Lawrence Yun emphasized the impact of mortgage rates on sales. Lower rates could attract more buyers and sellers to the market. Buyers face high prices, but inventory is up, giving them more options. The housing market remains competitive, with prices at record highs.

The housing market has seen a slow start to the spring buying season, with contract signings dropping sharply in April. Home prices near all-time highs and mortgage rates around 6.8% are impacting buyer affordability. The market is expected to pick up with lower interest rates attracting more buyers and sellers.



Read more at Yahoo Finance: Home sales rose slightly in May, but high mortgage rates are still hurting the market