US Existing Home Sales Decline in May Due to Record High Prices and Rising Mortgage Rates

Reported 11 months ago

In May, U.S. existing home sales fell for the third consecutive month as high prices and increasing mortgage rates deterred potential buyers, with sales dropping 0.7% to 4.11 million units. The National Association of Realtors reported a surge in housing inventory for the first time in nearly two years, potentially curbing further price increases and improving affordability. However, weak sales, along with a decline in housing starts and building permits, suggest that rising mortgage rates have hindered the housing market's recovery. Median home prices hit a record high of $419,300, surging 5.8% year-over-year, with most homes selling above $750,000 and 30% selling above the listing price. Despite the increase in supply, entry-level homes remain limited, and the housing market is not expected to drive the economy in the upcoming months.

Source: YAHOO

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