US home sales fall in June as prices soar to new heights

By ALEX VEIGA Associated Press Business Writer LOS ANGELES AP Sales of previously occupied U S homes slid in June to the slowest pace since last September as mortgage rates remained elevated and national median sales prices hit unprecedented levels Existing home sales fell last month from May to a seasonally adjusted annual rate of million units the National Association of Realtors announced Wednesday Related Articles US stocks head for another record and Japan s arena rallies after commerce deal Families of the Idaho students Bryan Kohberger stabbed to death are set to see him sentenced Professional who supplied Matthew Perry ketamine and called him a moron is set to enter guilty plea This day in History July the Detroit riot begins Erik Menendez is in hospital for a clinical condition His attorney seeks his release Sales were flat compared with June last year The latest home sales fell short of the million pace economists were expecting according to FactSet Home prices increased on an annual basis for the th consecutive month The national median sales price rose in June from a year earlier to an all-time high The U S housing sector has been in a slump since early when mortgage rates began to climb from pandemic-era lows Home sales fell last year to their lowest level in nearly years So far this year the average rate on a -year mortgage has remained relatively close to according to mortgage buyer Freddie Mac Homes purchased last month likely went under contract in May and June when the average rate on a -year mortgage ranged from to High mortgage rates can add hundreds of dollars a month in costs for borrowers limiting their purchasing power The trend is a key reason for why this year s spring homebuying season has been a bust The second half of the year really depends on what happens with mortgage rates explained Lawrence Yun NAR s chief economist The affordability constraints are limiting the activity of first-time buyers They accounted for of homes sales last month unchanged from May Historically they made up of home sales Home shoppers who can afford to buy at current mortgage rates or pay in cash are benefiting from more properties on the domain There were million unsold homes at the end of last month down from May but up nearly from June last year NAR commented That s still well below the roughly million homes for sale that was typical before the pandemic however June s month-end inventory translates to a -month supply at the current sales pace up from a -month pace at the end of May and months in June last year Traditionally a - to -month supply is considered a balanced field between buyers and sellers Homes for sale are staying on the area longer as sales remain in the doldrums Properties typically remained on the domain for days last month before selling up from days in June last year NAR commented