May sales reached a 4.17 million annual rate, exceeding forecasts despite higher mortgage rates and prices.
Sales of previously owned U.S. homes climbed 3.2% in May to a seasonally adjusted annual rate of 4.17 million units, the fastest pace this year. The increase marked a rebound from a sluggish start to the spring buying season and surpassed economists’ expectations of 4.07 million units.
The gain follows a prolonged slump in the housing market, with sales hovering near a 4-million annual pace since 2023. Prices also rose, with the median sales price increasing 1.3% year-over-year to $429,300, extending a 35-month streak of annual gains.
Mortgage rates have trended higher this spring but remain below year-ago levels, contributing to the uptick in demand. Regional data showed sales gains in the Midwest, South, and West, while the Northeast saw a decline.