What did existing home sales look like in May?
Buyers took advantage of a greater number of homes to choose from in May, pushing sales of existing homes upward despite stubborn mortgage interest rates amid the spring buying season around the country, the National Association of Realtors ® (NAR) said in a report released today.
Existing home sales, which the NAR defines as completed transactions for properties that include single-family homes, townhomes, condominiums and co-ops, increased in at least three markets since April.
"The relatively subdued sales are largely due to persistently high mortgage rates. Lower interest rates will attract more buyers and sellers to the housing market," NAR Chief Economist Lawrence Yun said in the report.
Total homes for sale at the end of April were 1.54 million units, up 6.2% from April and 20.3% from one year ago, the NAR report said, a sign that buyers will have more selection as we dive deeper into the traditional warm-weather homebuying season. More to choose from also could mean a drop in prices for buyers, as sellers face more competition.
The NAR expressed some additional optimism for homeowners as well as potential buyers.
"Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth,” Yun added in the NAR report. "If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory and a record-high number of jobs.”
Which regions showed changes in pending home sales?
Three of the four regions the NAR tracks in the U.S. showed increases in sales of existing homes in May, the NAR said.
- The Northeast experienced a 4.2% increase in existing home sales from the previous month.
- In the Midwest, existing home sales increased 2.1% from April.
- Completed transactions in the South went up 1.7% from the previous month.
- And sales of existing homes in the West dropped 5.4% from April.
Spring often signals a start to the annual homebuying season for existing home sales - and sales could pick up more as mortgage interest rates decline and the weather warms up even more heading further into summer.
Did mortgage rates show any change?
According to data from Freddie Mac, the 30-year fixed rate mortgage averaged 6.81% as of June 18*. That’s down from 6.84% one week ago and down from 6.87% one year ago.
Continued cooling on mortgage rates will likely be a welcome sign to prospective homebuyers. It could also signal a continuing thaw in the housing market as we push further into the homebuying season.
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* National average rates from Freddie Mac as of June 18, 2025 are not advertised rates from Guaranteed Rate Affinity.
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