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U.S. Home Sales Jump 3% in May, Prices Hit Record

6/10/2026

Summary

U.S. Home Sales Rise

United States – National Association of Realtors (NAR) reported that existing home sales rose 3.2% in May to a seasonally adjusted annual rate of 4.17 million units, the fastest pace since December.
The May sales figure exceeded economists’ expectation of roughly 4.07 million units, according to FactSet.
The U.S. median sales price increased 1.3% from a year earlier to $429,300, an all-time high for any May since 1999.
Home prices have risen on an annual basis for 35 months in a row.
First-time buyers accounted for 35% of home purchases in May, the highest share since June 2020, said Lawrence Yun, NAR’s chief economist.
At the end of May there were 1.55 million unsold homes, up 3.3% from April and up 0.6% from May last year, representing a 4.5-month supply at the current sales pace.
Freddie Mac reported that the average rate on a 30-year mortgage ranged from 6% to 6.46% in March-April and was 6.48% last week, down from 6.85% a year earlier.
Despite higher rates, home inventory remains well below the pre-COVID typical level of roughly 2 million homes for sale.

Summary

Mortgage Rates Surge

Mortgage rates surged after the U.S. and Israel attacked Iran in late February, lifting the 30-year fixed-rate by about 50 bps.
The conflict pushed up global energy and freight costs through the Strait of Hormuz, raising U.S. Treasury yields that mortgage rates track.
Analysts estimate that without the war-related inflation spike the 30-year mortgage would sit in the mid-to-upper 5 % range, while the conflict added roughly 1.5 percentage points versus October 2023.

History

Historical Context

The 1973 OAPEC oil embargo—triggered by U.S. support for Israel during the Yom Kippur War—quadrupled oil prices, a rise of nearly 300%, and spurred U.S. interest-rate hikes that stalled housing. In May 2024, the United States and Israel struck Iran, sending mortgage rates soaring again; NAR reported a 3.2% sales increase and Freddie Mac tightened credit, echoing the 1973 shock.

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U.S. Home Sales Rise

United States – National Association of Realtors (NAR) reported that existing home sales rose 3.2% in May to a seasonally adjusted annual rate of 4.17 million units, the fastest pace since December.
The May sales figure exceeded economists’ expectation of roughly 4.07 million units, according to FactSet.
The U.S. median sales price increased 1.3% from a year earlier to $429,300, an all-time high for any May since 1999.
Home prices have risen on an annual basis for 35 months in a row.
First-time buyers accounted for 35% of home purchases in May, the highest share since June 2020, said Lawrence Yun, NAR’s chief economist.
At the end of May there were 1.55 million unsold homes, up 3.3% from April and up 0.6% from May last year, representing a 4.5-month supply at the current sales pace.
Freddie Mac reported that the average rate on a 30-year mortgage ranged from 6% to 6.46% in March-April and was 6.48% last week, down from 6.85% a year earlier.
Despite higher rates, home inventory remains well below the pre-COVID typical level of roughly 2 million homes for sale.

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