Existing-Home Sales Edge Higher in May Despite Mortgage Rate Pressure

Key Takeaways:

• U.S. existing-home sales rose 0.8% in May.
• High mortgage rates continue to pressure demand.
• Inventory levels and home prices are rising.
• The housing market shows resilience despite economic pressures.

Sales Edge Up Amid Mortgage Challenges

U.S. existing-home sales experienced a slight uptick in May, rising by 0.8%. This modest growth comes even as high mortgage rates continue to challenge potential buyers across the country.

High Mortgage Rates Pressure Demand

Elevated mortgage rates have been putting significant pressure on buyer demand. The cost of borrowing remains high, making home purchases less affordable for many. Despite this, the housing market has seen sales edge higher, indicating that some buyers are still proceeding with their plans.

Inventory and Prices on the Rise

In tandem with the increase in sales, inventory levels and home prices are also on the rise. More homes are entering the market, offering buyers a wider selection. However, the continued rise in prices may offset some of the benefits of increased inventory, as affordability remains a concern.

Market Shows Resilience

The housing market’s ability to register growth in existing-home sales, despite economic pressures like high mortgage rates, demonstrates a notable resilience. This trend suggests that underlying demand remains strong, and it may have positive implications for the market’s outlook in the coming months.