In June, U.S. existing-home sales fell more than analysts expected, dropping 2.7% from May to a seasonally adjusted annual rate of 3.93 million homes sold.
Economists had predicted a much smaller decline, with forecasts centered around 4.0 million. Persistent high mortgage rates—remaining in the high 6% range—along with record-high home prices are continuing to suppress activity during what is typically the market’s busiest season.
Lawrence Yun, chief economist at the National Association of Realtors, pointed to ongoing affordability challenges as the main reason for the pullback, saying that strong job growth alone has not been enough to boost buyer demand.