According to the National Association of REALTORS®, existing home sales slowed for the second consecutive month in May. This slowdown may be due to a sustained lack of available homes for sale in many parts of the country, with many also citing increases in home prices and mortgage rates as contributing factors.
Interest Rates
According to Freddie Mac, 30-year fixed rates decreased from 4.66 percent to 4.57 percent. This rate remains well below the historical average of 8.90 percent.
Home Sales
The National Association of REALTORS® reported home sales at a seasonally adjusted annual rate of approximately 5.43 million homes during the month of May. This was a decrease of 0.4 percent from April and a decrease of 3.0 percent from May of last year.
Home Prices
The median home price increased to $264,800 in May, which was up 2.7 percent from April and up 4.9 percent from May of last year. The median home price has increased by approximately $12,300 in the past year alone.
Inventory
There was a 4.0-month supply of housing inventory in May, which was flat from April. The total number of available homes for sale has decreased by 4.8 percent compared to May of last year.
