![US existing home sales fall as prices hit record](https://www.portugalcolonial.pt/media/shared/articles/ee/61/a7/US-existing-home-sales-fall-as-pric-199968.jpg)
-
DR Congo sentences 25 soldiers to death for 'fleeing the enemy': lawyer
-
Sinner, Alcaraz move on at Wimbledon as Osaka slumps on Centre Court return
-
'Lucky' Sinner defeats big-hitting Berrettini to reach Wimbledon third round
-
Messi a doubt for Argentina ahead of Copa quarter-final
-
British tennis ace Raducanu votes for 'lie-in' on election day
-
France film director Jacquot charged with raping two actors
-
Israel 'evaluating' new Hamas 'ideas' on halting Gaza war
-
Venezuela, US agree to 'improve relations,' says Caracas
-
Under-fire Kenya govt says to review state salary hikes
-
Thousands told to flee raging California wildfire
-
Osaka focuses on Olympics after Wimbledon KO
-
Tens of thousands flee south Gaza as tensions soar
-
US Fed officials stressed 'patience' on rate cuts: minutes
-
Blond not bombs as Fognini learns to love Wimbledon
-
New lithium plant inaugurated in Argentina
-
Threads hits 175 mn users on first anniversary
-
French court says Netflix shark hit can keep streaming in copycat row
-
Comeback king 'Cav' to carry on doing the thing he loves
-
Alcaraz marches on at Wimbledon as Osaka returns to Centre Court
-
Biden under pressure as Democratic panic rises
-
Belarus frees 'some political prisoners': exiled opposition leader
-
Alcaraz coasts into Wimbledon third round
-
Cavendish makes Tour de France history with 35th stage win
-
Everton sign forward Ndiaye from Marseille
-
Bailed Indian opposition leader to return as chief minister
-
World's oldest artwork discovered in Indonesian cave
-
Toney urges England to kick on after Euros reprieve
-
Murray teams up with Raducanu in Wimbledon mixed doubles
-
Former England rugby coach Jack Rowell dies aged 87
-
Hurricane Beryl bears down on Jamaica
-
US trade deficit expands less than expected in May: govt
-
'The god took away my son': Indians grieve after deadly stampede
-
Moscow hit by heat not seen in over a century
-
US private hiring eases unexpectedly in June: ADP
-
Confident Kroos says Germany-Spain clash 'won't be my last game'
-
Paris bars to open 24h for Olympics opening ceremony
-
Putin, Xi vie for influence at Central Asian summit
-
Germany, Sweden arrest eight over Syria crimes against humanity
-
French giant Mpetshi Perricard joins Wimbledon heavy artillery
-
Two-time Major winner Langer to make 'emotional' European Tour bow
-
French PM urges united front to stop far-right takeover
-
Olympic silver medallist gymnast Poujade dies at 51
-
Bhole Baba: preacher at centre of Indian stampede disaster
-
Microsoft to invest 2.2 bn euros in Spain data centres
-
Showdowns, young guns and own goals as Euro 2024 head into quarter-finals
-
Russia advances in east, kills five in Dnipro strikes
-
France prosecutors request rape charges against film director
-
Schumacher blackmail suspects had 'family photos'
-
EU clears Lufthansa's proposed ITA Airways stake, with conditions
-
Indian World Cup winners head home after hurricane delay
![US existing home sales fall as prices hit record](https://www.portugalcolonial.pt/media/shared/articles/ee/61/a7/US-existing-home-sales-fall-as-pric-199968.jpg)
US existing home sales fall as prices hit record
Existing home sales in the United States edged lower in May as prices reached a record high on continued tight inventory, according to industry data published on Friday.
Sales of previously owned homes fell by 0.7 percent from a month earlier to a seasonally adjusted annual rate of 4.11 million, the National Association of Realtors (NAR) said in a statement.
This was slightly above market expectations, according to Briefing.com.
Year-over-year sales were down 2.8 percent.
"Existing home sales edged lower in May, reflecting the backup in mortgage rates a month or two earlier," Oxford Economics lead US economist Nancy Vanden Houten wrote in a note to clients, referring to the high cost of borrowing.
US mortgage costs remain elevated as the Federal Reserve continues to keep interest rates high in its battle to bring inflation back down towards its long-term target of two percent.
The popular 30-year fixed-rate mortgage, which is indirectly affected by the Fed's decisions about its key short-term lending rate, sits at just under 6.9 percent, according to the government-sponsored firm Freddie Mac, which buys and guarantees existing mortgages.
This is down slightly from earlier this year, when it jumped above seven percent following a spike in yields on the popular 10-year US Treasury, which is used by lenders to help price a range of different financial products.
"The more recent decline in mortgage rates, which we expect to gain steam as interest-rate cuts by the Federal Reserve get underway, will support a modest rebound in home sales later in the year," Vanden Houten said.
- New record high -
The median sale price of an existing home rose 5.8 percent year-over-year to $419,300, the highest price ever recorded.
"Eventually, more inventory will help boost home sales and tame home price gains in the upcoming months," NAR Chief Economist Lawrence Yun said in a statement.
"Increased housing supply spells good news for consumers who want to see more properties before making purchasing decisions," he added.
Total housing inventory at the end of May was up 6.7 percent from a month earlier, and up 18.5 percent from a year ago.
"Home prices reaching new highs are creating a wider divide between those owning properties and those who wish to be first-time buyers," Yun said.
"The mortgage payment for a typical home today is more than double that of homes purchased before 2020," he added. "Still, first-time buyers in the market understand the long-term benefits of owning."
A.Silveira--PC