Existing-Home Sales Post Surpise Gain Despite Prices Hitting May Record

12:34 PM EDT, 06/23/2025 (MT Newswires) -- US existing home sales unexpectedly rebounded in May even as prices reached a record high for the month, according to data released Monday by the National Association of Realtors.

Sales edged up 0.8% sequentially to a seasonally adjusted annual rate of 4.03 million units last month, following a 0.5% decline in April. The consensus was for a 1.3% drop in May, according to a survey compiled by Bloomberg.

The median existing-home sales price increased 1.3% year over year to $422,800, a May record and the 23rd straight month of annual gains. As of June 18, the 30-year fixed-rate mortgage averaged 6.81%, down from 6.84% a week earlier, the NAR said, citing Freddie Mac data.

"The relatively subdued sales are largely due to persistently high mortgage rates," NAR Chief Economist Lawrence Yun said. "Lower interest rates will attract more buyers and sellers to the housing market."

Last week, Federal Reserve Governor Christopher Waller said the central bank may be in a position to ease monetary policy "as early as July," as tariffs are unlikely to increase inflation significantly. The Fed kept interest rates unchanged for a fourth straight meeting last week.

Single-family home sales reached 3.67 million units last month, up 1.1% from April, NAR data showed. Existing condominium and co-op sales fell 2.7% to 360,000 units. Housing inventory at the end of May was 1.54 million units, up 6.2% sequentially and 20% from a year earlier.

"Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth," Yun said. "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."

Separately, Oxford Economics said it expects existing home sales to remain "subdued" over the remainder of the year. However, supply gains and moderating home price growth "should cushion the downside," Lead US Economist Nancy Vanden Houten said in remarks e-mailed to MT Newswires.

Last week, government data showed that US housing starts fell more than projected last month, driven by a slump in multi-family projects.

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