Sales of existing homes dropped more than expected in June, falling 2.7% to a seasonally adjusted annual rate of 3.93 million. Economists had forecast a smaller decline to 4 million homes, reflecting the housing market’s freeze due to high prices and mortgage rates.

Lawrence Yun, NAR’s chief economist, attributes the sales decline to affordability challenges caused by higher mortgage rates. Median existing home prices rose 2% year over year to a new record high of $435,300. The steepest sales declines were in the Northeast, where prices continue to rise.

The Midwest also saw a sales contraction of 4% month over month, with prices up 3.4% since June 2024. Only the West experienced a sales gain in June, rising 1.4% from May, though down 4.1% from a year earlier.

Overall, the housing market is struggling in 2025 due to record-high prices and elevated mortgage rates. Spring, historically the busiest time for home sales, has been subdued, with sales reflecting the market’s challenges in affordability for buyers despite a healthy economy.

Read more at Yahoo Finance: Home sales declined in June as prices hit new all-time high