Record prices and elevated mortgage rates weighed on June sales, missing forecasts of 4.20 million units despite annual gains.
Existing home sales in the US declined 2.4% in June to an annualized pace of 4.09 million units, reversing a five-month high. The drop fell short of Wall Street expectations for 4.20 million units, as record-high prices and borrowing costs dampened buyer activity.
The median price for a previously owned home reached $440,600, up 1.8% from a year earlier. Inventory edged down to 1.56 million units, while the 30-year mortgage rate averaged 6.49%, down from 6.82% a year ago but still elevated by 45 basis points since Middle East tensions escalated.
Annual sales, however, improved 2.8% compared to June 2025, supported by job gains exceeding half a million since the start of the year.