logo
May home sales barely move as high mortgage rates, prices, weigh on housing market

May home sales barely move as high mortgage rates, prices, weigh on housing market

The Hill23-06-2025
NEW YORK (AP) — Sales of previously occupied U.S. homes edged higher in May, as stubbornly high mortgage rates and rising prices made homebuying less affordable even as the inventory of properties on the market continued to increase.
Existing home sales rose 0.8% last month from April to a seasonally adjusted annual rate of 4.03 million units, the National Association of Realtors said Monday.
Sales fell 0.7% compared with May last year. The latest home sales fell topped the 3.95 million pace economists were expecting, according to FactSet.
'The sluggish sales activity one can attribute essentially to affordability,' said Lawrence Yun, NAR's chief economist.
Home prices increased on an annual basis for the 23rd consecutive month, although the rate of growth continued to slow. The national median sales price rose 1.3% in May from a year earlier to $422,800, an all-time high for the month of May.
The U.S. housing market has been in a slump since early 2022, when mortgage rates began to climb from pandemic-era lows. Home sales fell last year to their lowest level in nearly 30 years.
The average rate on a 30-year mortgage has remained relatively close to its high so far this year of just above 7%, which it set in mid-January, according to mortgage buyer Freddie Mac. The low point for this year arrived five weeks ago, when the average rate briefly dropped to 6.62%. Last week, it averaged 6.81%.
Homes purchased last month likely went under contract in April and May, when the average rate on a 30-year mortgage ranged from 6.62% to 6.89%.
High mortgage rates, which can add hundreds of dollars a month in costs for borrowers, remain a key affordability hurdle for many would-be homebuyers. Years of soaring home prices have helped put homeownership out of reach. The median U.S. home sales price is up 52% since May 2019, while the U.S. median annual income has risen 30% in the same period, Yun noted.
While price growth has slowed, elevated mortgage rates and rising prices are forcing prospective homebuyers to save more for a down payment. In May, buyers needed an annual income of $91,960 to afford a typical home with a 20% down payment, or nearly 87% more than in May 2019, according to Realtor.com.
Home shoppers who can afford to buy at current mortgage rates benefited from a wider selection of properties on the market.
There were 1.54 million unsold homes at the end of last month, a 6.2% increase from April, and 20.3% higher than May last year, NAR said. That's still well below the roughly 2 million homes for sale that was typical before the pandemic, however.
May's month-end inventory translates to a 4.6-month supply at the current sales pace, up from a 4.4-month pace at the end of April and 3.8 months in May last year. Traditionally, a 5- to 6-month supply is considered a balanced market between buyers and sellers.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Pressure from Trump for trade deals before Wednesday deadline, but hints of more time for talks
Pressure from Trump for trade deals before Wednesday deadline, but hints of more time for talks

The Hill

time37 minutes ago

  • The Hill

Pressure from Trump for trade deals before Wednesday deadline, but hints of more time for talks

WASHINGTON (AP) — The Trump administration is stepping up pressure on trading partners to quickly make new deals before a Wednesday deadline, with plans for the United States to start sending letters Monday warning countries that higher tariffs could kick in Aug. 1. That furthers the uncertainty for businesses, consumers and America's trading partners, and questions remain about which countries will be notified, whether anything will change in the days ahead and whether President Donald Trump will once more push off imposing the rates. Trump and his top trade advisers say he could extend the time for dealmaking but they insist the administration is applying maximum pressure on other nations. Kevin Hassett, director of the White House National Economic Council, told CBS' 'Face the Nation' on Sunday that Trump would decide when it was time to give up on negotiations. 'The United States is always willing to talk to everybody about everything,' Hassett said. 'There are deadlines, and there are things that are close, so maybe things will push back past the deadline or maybe they won't. In the end the president is going to make that judgment.' Stephen Miran, the chair of the White House Council of Economic Advisers, likewise said countries negotiating in good faith and making concessions could 'sort of, get the date rolled.' The steeper tariffs that Trump announced April 2 threatened to overhaul the global economy and lead to broader trade wars. A week later, after the financial markets had panicked, his administration suspended for 90 days most of the higher taxes on imports just as they were to take effect. The negotiating window until July 9 has led to announced deals only with the United Kingdom and Vietnam. Trump imposed elevated tariff rates on dozens of nations that run meaningful trade surpluses with the U.S., and a 10% baseline tax on imports from all countries in response to what he called an economic emergency. There are separate 50% tariffs on steel and aluminum and a 25% tariff on autos. Since April, few foreign governments have set new trade terms with Washington as the Republican president demanded. Trump told reporters Friday that his administration might be sending out letters as early as Saturday to countries spelling out their tariff rates if they did not reach a deal, but that the U.S. would not start collecting those taxes until Aug. 1. On Sunday, he said he would send out letters starting Monday — 'could be 12, could be 15' — to foreign governments reflecting planned tariffs for each. 'We've made deals also,' Trump told reporters before heading back to the White House from his home in New Jersey. 'So we'll get to have a combination of letters, and some deals have been made.' He and his advisers have declined to say which countries would receive the letters. Treasury Secretary Scott Bessent rejected the idea that Aug. 1 was a new deadline and declined to say what might happen Wednesday. 'We'll see,' Bessent said on CNN's State of the Union. 'I'm not going to give away the playbook.' He said the U.S. was 'close to several deals,' and predicted several big announcements over the next few days. He gave no details. 'I think we're going to see a lot of deals very quickly,' Bessent said. Later Sunday, Trump vowed to impose more tariffs against the BRICS bloc of developing nations, which had condemned tariffs increases at its summit in Brazil. Trump said in a post on his social media platform that any country aligning itself with what he termed 'the Anti-American policies of BRICS' would be levied an added 10% tariff. Trump has announced a deal with Vietnam that would allow U.S. goods to enter the country duty-free, while Vietnamese exports to the U.S. would face a 20% levy. That was a decline from the 46% tax on Vietnamese imports he proposed in April — one of his so-called reciprocal tariffs targeting dozens of countries with which the U.S. runs a trade deficit. Asked if he expected to reach deals with the European Union or India, Trump said Friday that 'letters are better for us' because there are so many countries involved. 'We have India coming up and with Vietnam, we did it, but much easier to send a letter saying, 'Listen, we know we have a certain deficit, or in some cases a surplus, but not too many. And this is what you're going to have to pay if you want to do business in the United States.' Canada, however, will not be one of the countries receiving letters, Trump's ambassador, Pete Hoekstra, said Friday after trade talks between the two countries recently resumed. 'Canada is one of our biggest trading partners,' Hoekstra told CTV News in an interview in Ottawa. 'We're going to have a deal that's articulated.' Canadian Prime Minister Mark Carney has said he wants a new deal in place by July 21 or Canada will increase trade countermeasures. Hoekstra would not commit to a date for a trade agreement and said even with a deal, Canada could still face some tariffs. But 'we're not going to send Canada just a letter,' he said. ___ Price reported from Bridgewater, New Jersey. AP Business Writer Matt O'Brien in Providence, Rhode Island, contributed to this report.

U.S. envoy receives the Lebanese government's response to Hezbollah disarmament proposal
U.S. envoy receives the Lebanese government's response to Hezbollah disarmament proposal

Hamilton Spectator

time3 hours ago

  • Hamilton Spectator

U.S. envoy receives the Lebanese government's response to Hezbollah disarmament proposal

BEIRUT (AP) — A U.S. envoy said Monday he was satisfied with the Lebanese government's response to a proposal to disarm the militant Hezbollah group, adding that Washington is ready to help the small crisis-hit nation emerge from its long-running political and economic crisis. The U.S. envoy to Lebanon, Tom Barrack, spoke to journalists after meeting President Joseph Aoun, saying he will study the government's seven-page response. Barrack said the American and Lebanese sides are committed 'to get a resolution.' 'What the government gave us was something spectacular in a very short period of time and a very complicated manner,' Barrack said during his 20-minute news conference at the presidential palace southeast of Beirut. His meetings in Lebanon came amid fears that Hezbollah's refusal to immediately disarm would renew war between Israel after a shaky ceasefire agreement went into effect in November. Last month, Barrack gave Lebanese officials a proposal that aims to disarm Hezbollah and move on with some economic reforms to try get Lebanon out of its nearly 6-year economic crisis, the worst in its modern history. The economic meltdown is rooted in decades of corruption and mismanagement by Lebanon's political class. Barrack said Lebanon should change in the same way as Syria has following the fall in December of Syrian President Bashar Assad ,who was replaced by a new leadership that is moving ahead with major economic reforms. Barrack said President Donald Trump and the U.S. are ready to help Lebanon change and 'if you don't want change, it's no problem.' The rest of the region is moving at high speed,' he said. Hezbollah's weapons have been one of the principal sticking points since Israel withdrew from southern Lebanon in 2000, ending an 18-year occupation. The two sides fought a destructive war in 2006 that ended in a draw. The latest Israel-Hezbollah war began a day after the Hamas Oct. 7, 2023 attack on southern Israel and intensified in September, leaving the Iran-backed group badly bruised and much of its political and military leadership dead . Since a U.S.-brokered ceasefire went into effect in November, Hezbollah has almost ended all its military presence along the border with Israel, which is insisting that the group disarms all over Lebanon. Aoun said Sunday that the number of Lebanese troops along the border with Israel will increase to 10,000, adding that only Lebanese soldiers and U.N. peacekeepers will be armed on the Lebanese side of the border. On Sunday night, hours before Barrack arrived in Beirut, Israel's air force carried out strikes on southern and eastern Lebanon, wounding nine people, according to state media. The Israeli army said the airstrikes hit Hezbollah's infrastructure, arms depots and missile launchers. Earlier Sunday, Hezbollah leader Naim Kassem reiterated the militant group's refusal to lay down its weapons before Israel withdraws from all of southern Lebanon and stops its airstrikes. The Hezbollah-Israel war left over 4,000 people dead in Lebanon and caused destruction estimated at $11 billion . In Israel, 127 people, including 80 soldiers, were killed during the war. Since the November ceasefire, Israel has carried out hundreds of airstrikes on different parts of Lebanon, killing about 250 people and injuring over 600. Israel is also still holding five strategic posts inside Lebanon that it refused to withdraw from earlier this year. Error! Sorry, there was an error processing your request. There was a problem with the recaptcha. Please try again. You may unsubscribe at any time. By signing up, you agree to our terms of use and privacy policy . This site is protected by reCAPTCHA and the Google privacy policy and terms of service apply. Want more of the latest from us? Sign up for more at our newsletter page .

U.S. envoy receives the Lebanese government's response to Hezbollah disarmament proposal
U.S. envoy receives the Lebanese government's response to Hezbollah disarmament proposal

San Francisco Chronicle​

time4 hours ago

  • San Francisco Chronicle​

U.S. envoy receives the Lebanese government's response to Hezbollah disarmament proposal

BEIRUT (AP) — A U.S. envoy said Monday he was satisfied with the Lebanese government's response to a proposal to disarm the militant Hezbollah group, adding that Washington is ready to help the small crisis-hit nation emerge from its long-running political and economic crisis. The U.S. envoy to Lebanon, Tom Barrack, spoke to journalists after meeting President Joseph Aoun, saying he will study the government's seven-page response. Barrack said the American and Lebanese sides are committed 'to get a resolution.' 'What the government gave us was something spectacular in a very short period of time and a very complicated manner,' Barrack said during his 20-minute news conference at the presidential palace southeast of Beirut. His meetings in Lebanon came amid fears that Hezbollah's refusal to immediately disarm would renew war between Israel after a shaky ceasefire agreement went into effect in November. Last month, Barrack gave Lebanese officials a proposal that aims to disarm Hezbollah and move on with some economic reforms to try get Lebanon out of its nearly 6-year economic crisis, the worst in its modern history. The economic meltdown is rooted in decades of corruption and mismanagement by Lebanon's political class. Barrack said Lebanon should change in the same way as Syria has following the fall in December of Syrian President Bashar Assad,who was replaced by a new leadership that is moving ahead with major economic reforms. Barrack said President Donald Trump and the U.S. are ready to help Lebanon change and 'if you don't want change, it's no problem." The rest of the region is moving at high speed," he said. Hezbollah's weapons have been one of the principal sticking points since Israel withdrew from southern Lebanon in 2000, ending an 18-year occupation. The two sides fought a destructive war in 2006 that ended in a draw. The latest Israel-Hezbollah war began a day after the Hamas Oct. 7, 2023 attack on southern Israel and intensified in September, leaving the Iran-backed group badly bruised and much of its political and military leadership dead. Since a U.S.-brokered ceasefire went into effect in November, Hezbollah has almost ended all its military presence along the border with Israel, which is insisting that the group disarms all over Lebanon. Aoun said Sunday that the number of Lebanese troops along the border with Israel will increase to 10,000, adding that only Lebanese soldiers and U.N. peacekeepers will be armed on the Lebanese side of the border. On Sunday night, hours before Barrack arrived in Beirut, Israel's air force carried out strikes on southern and eastern Lebanon, wounding nine people, according to state media. The Israeli army said the airstrikes hit Hezbollah's infrastructure, arms depots and missile launchers. Earlier Sunday, Hezbollah leader Naim Kassem reiterated the militant group's refusal to lay down its weapons before Israel withdraws from all of southern Lebanon and stops its airstrikes. The Hezbollah-Israel war left over 4,000 people dead in Lebanon and caused destruction estimated at $11 billion. In Israel, 127 people, including 80 soldiers, were killed during the war. Since the November ceasefire, Israel has carried out hundreds of airstrikes on different parts of Lebanon, killing about 250 people and injuring over 600. Israel is also still holding five strategic posts inside Lebanon that it refused to withdraw from earlier this year.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store