Home sales stayed muted in June as affordability challenges persisted

Home income underwhelmed successful June, a caller motion of however delicate buyers and sellers are to tiny changes successful owe rates and affordability arsenic prices deed caller all-time highs. 

Sales of existing homes dropped 2.4% from May to a seasonally adjusted yearly complaint of 4.09 million, according to National Association of Realtors information released connected Thursday. Economists were expecting a humble summation to 4.2 million. 

The monthly fluctuations are apt explained by caller owe complaint volatility, NAR main economist Lawrence Yun said. June's buyers apt locked successful their rates successful April oregon May, soon aft mean 30-year owe rates rapidly climbed from astir 6% to 6.5% successful effect to the lipid daze and the Iran war. 

Compared to past twelvemonth — erstwhile owe rates were adjacent higher — income improved 2.8%. Activity compared to June 2025 accrued successful each parts of the state but the Northeast, wherever it was flat.

"Overall, momentum appears to beryllium somewhat amended compared to a twelvemonth ago," Yun said. 

Read more: How to get the lowest owe rates close now

Buyers are uncovering somewhat amended affordability conditions this year, arsenic location terms appreciation has mostly trailed wage growth, owe rates stay little than they were successful 2025, and inventory levels person improved. 

But affording a location remains a situation for many. The median existing location income terms reached a caller precocious of $440,600 successful June. 

"Now, we are successful the 4th twelvemonth of this income slump," Yun said. "One wonders, 'For however agelong tin location income stay benignant of stuck astatine this near-4 cardinal range?'"

Claire Boston is simply a Senior Reporter for Yahoo Finance covering housing, mortgages, and location insurance.

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