WASHINGTON, June 9 U.S. existing home sales increased more than expected in May, though rising mortgage rates and still-tight inventory remain a challenge for the housing market.
Home sales jumped 3.2% last month to a seasonally adjusted annual rate of 4.170 million units, the National Association of Realtors said on Tuesday
Economists polled by Reuters had forecast home resales advancing to a rate of 4.07 million units. Sales increased in the Northeast, South and Midwest regions, but were unchanged in the West. Home resales, which are counted at the closing of a contract, increased 3.2% year-on-year in May. “More Americans are on the move, with home sales rising to the highest level since December,” said Lawrence Yun, the NAR’s chief economist. “This is great news for the housing market.” Last month’s sales likely reflected contracts signed in March and April.
Mortgage rates started rising in March as the U.S. and Israel attacked Iran, before easing towards the end of April following a ceasefire. The Middle East conflict is fanning inflation, through higher prices for energy and other products that are shipped through the Strait of Hormuz. That has helped to lift U.S.