US existing home sales slide to 9-month low amid soaring costs
US existing home sales decline 2.7% in June
Seasonally adjusted annual rate falls to 3.9 million
Industry data from the National Association of Realtors (NAR) shows a 2.7 percent drop last month, bringing the adjusted yearly rate to 3.9 million. Analysts had forecast a smaller pullback to 4.0 million.
No year‑on‑year change in sales
In the same period, the NAR reports no shift when compared to the previous year.
Median home price hits a record high of $435,300
From a year‑ago perspective, the median price climbed 2 percent, setting a new June high.
Key factors driving the market
- Supply shortages persist – multiple years of undersupply are pushing prices to record levels.
- Construction lags population growth – this limits first‑time buyers from entering the market.
- Mortgage rates weigh on sales – higher rates dampen demand.
First‑time homeowners benefit from lower rates
NAR chief economist Lawrence Yun indicates that a fall in the average rate to 6 percent could add 160,000 renters to the homeowner count and boost sales activity among existing owners.
Mortgage rates remain high
The 30‑year fixed‑rate mortgage averaged around 6.8 percent in the second half of June, similar to mid‑May and mid‑April levels, according to Freddie Mac data. Rates were significantly lower a few years ago.
Federal Reserve hedge against tariffs
In a year where the Fed holds the benchmark lending rate steady, policymakers are monitoring the economic impact of President Donald Trump’s new tariffs. Trump has criticized the approach, arguing that tariffs could fuel inflation and slow growth.
Trump’s stance on interest rates
In a recent social media post, Trump stated that the Fed “refuses to lower interest rates” and called for a drop of three percentage points from current levels. While lower rates can spur the economy, they are also associated with higher consumer prices.
