Home sales rose slightly in May, but the high mortgage rates still hurt the market
Existing home sales in the US improved slightly in May. This is a small sign of life in the housing market, shaking by high mortgage rates and rising economic uncertainty.
Sale of Previously owned houses rose 0.8% The National Association of Real Estates said on Monday, a seasonally adjusted annual rate of 403 million, from a month ago. Economists had expected a 1.3% drop to the proportion of 3.95 million homes.
Compared to a year ago, sales have declined by 0.7%.
Existing home sales will be counted when sales close. That is, most homes signed contracts a few months ago at the beginning of the traditional spring home buying season. So far, the signs have pointed to slow springs. Contract signing has been reduced dramatically In April, and the house is spending more time on the market than it was a year ago.
“The relatively restrained sales are primarily due to sustained high mortgage rates,” Lawrence Yun, chief economist at NAR, said in a statement. “Lower interest rates will attract more buyers and sellers to the housing market.”
Mortgage rates have been stable at around 6.8% in recent months, home prices are approaching an all-time high, with many prospects struggling with affordability. According to NAR data, the median existing home was sold for $422,800 in May. Prices have risen 1.3% from a year ago.
If they can make the stomach a higher price, buyers have more homes to choose from this spring. As of May, home inventory was 1.54 million, up 6.2% from a month ago and 20% from a year ago.
read more: 2025 Housing Market: Is it a good time to buy a home?
Sales were strongest in the more competitive and supply-restricted regions of the Northeast and Midwest. In the northeast, existing home sales increased 4.2% from April and 4.2% from the previous year. The Midwest reported a growth rate of 2.1% and 1% over a month since 2024.
In the South, existing home sales increased 1.7% from a month ago, but in the West it fell 5.4%.
Claire Boston is a senior reporter on Yahoo Finance, covering home, mortgages and household insurance.
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