US Existing Home Sales Fall 2.7% as Prices Hit Record $435,300

Sales of previously occupied U.S. homes declined 2.7% in June to a seasonally adjusted annual rate of 3.93 million units, marking the slowest pace since last September, according to the National Association of Realtors. Despite the drop in sales, the national median home price rose to a record high of $435,300, increasing annually for the 24th consecutive month. The housing market has been sluggish since early 2022 due to rising mortgage rates, which have hovered near 7% this year, limiting homebuyers' purchasing power by adding significant monthly costs. Although the number of homes on the market has increased compared to last year, inventory levels remain below normal, sustaining upward pressure on prices even as sales slow. Economists had expected a higher sales pace than what occurred, and the market's trajectory for the second half of the year largely depends on future mortgage rate movements. Lawrence Yun, chief economist for the National Association of Realtors, emphasized that mortgage rate developments will be crucial in shaping the housing market's performance moving forward.