U.S. Existing Home Sales Surge 3.2 % in May 2026, Reaching Highest Level Since December

In May 2026, existing-home sales rose 3.2 % both month-over-month and year-over-year, reaching a seasonally adjusted annual rate (SAAR) of 4.17 million units, the strongest pace since December. The median sales price climbed 1.3 % to $429,300, marking the 35th consecutive month of price gains. Total inventory increased to 1.55 million homes (- 3.3 % from April, + 0.6 % from May 2025), yielding a 4.5-month supply of unsold homes.

Existing-Home Sales Reach Highest Level Since December as Buyers Return

Month-over-month sales rose in the Northeast (+2.2 %), Midwest (+6.4 %), and South (+3.2 %); the West showed no change. Year-over-year, sales increased in the Midwest, South, and West but fell in the Northeast. The Northeast’s sales decline coincided with the strongest regional price growth, a pattern linked to tighter inventory. Foreclosures and underwater sales together accounted for 1 % of transactions, indicating homeowner financial stability.

Existing-Home Sales Reach Highest Level Since December as Buyers Return

Average 30-year fixed mortgage rates hovered between 6.44 % and 6.56 % in May—about 33 bps lower than a year earlier and roughly 1.5 percentage points below October 2023. Rates have risen since the February 2024 war with Iran, which lifted oil prices, long-term bond yields, and mortgage costs. Despite higher rates, the Housing Affordability Index improved to 105.6 from 97.5 a year ago, reflecting modest income gains outpacing price growth in many markets. First-time buyers accounted for 35 % of transactions, the highest share since June 2020.

Philadelphia Inquirer

The sales uptick is expected to boost ancillary sectors—lawn care, furniture, moving services, and mortgage origination—and to support construction and related supply chains, even as new-home starts remain below pre-pandemic levels.

NAR Existing-Home Sales Report Shows 3.2% Increase in May

NAR Chief Economist Lawrence Yun described the surge as evidence of increased mobility and improved affordability, noting that mortgage rates remain near long-term averages and that income growth modestly exceeds price appreciation. Ted Rossman, Bankrate principal analyst, called the results “a bit above expectations,” attributing the boost primarily to a modest dip in mortgage rates while warning that war-driven inflation keeps rates elevated.

Existing-Home Sales Reach Highest Level Since December as Buyers Return

Rossman cautioned that overall sales-growth pace remains slower than anticipated, constrained by persistent mid-6 % mortgage rates and limited inventory. He emphasized that without a further decline in rates—potentially hindered by ongoing geopolitical tensions—the market’s recovery could stall.

Existing-Home Sales Reach Highest Level Since December as Buyers Return

Sources differ slightly on the exact mortgage-rate figure (6.44 % vs. 6.56 %) and on whether May’s Northeast sales rose (2.2 % MoM) or remained unchanged. Forecasts for May’s SAAR varied between 4.07 million and 4.07 million units, though all agreed the actual 4.17 million exceeded expectations.

US home sales surge to fastest pace this year despite rising mortgage rates, prices

• “More Americans are on the move, with home sales rising to the highest level since December. This is great news for the housing market and the economy,” — Lawrence Yun, NAR Chief Economist

NAR Existing-Home Sales Report Shows 3.2% Increase in May

• “Improving affordability is helping drive this momentum. Even with mortgage rates ticking up compared to earlier in the year, they remain lower than a year ago and are essentially at the long-term historical average.” — Lawrence Yun

What did existing home sales look like in May 2026?

• “The new record-high May home price reflects solid fundamentals for homeowners and ongoing supply constraints,” — Lawrence Yun

NAR Existing-Home Sales Report Shows 3.2% Increase in May

• “Only 1 percent of all home sales involved foreclosure or an underwater situation in which the sale price could not cover the outstanding mortgage balance. This shows homeowners are on solid financial footing.” — Lawrence Yun

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• “Existing home sales came in a bit above expectations in May, according to the National Association of Realtors, with lower mortgage rates receiving much of the credit.” — Ted Rossman, Bankrate Principal Analyst

Existing-Home Sales Reach Highest Level Since December as Buyers Return

• “If not for the war-related spike in inflation, the average 30-year fixed mortgage rate could well be in the mid-to-upper 5’s,” — Ted Rossman

Philadelphia Inquirer

Analysts will watch June’s mortgage-rate trajectory, the Federal Reserve’s policy stance, and oil-price volatility for clues on whether the May surge signals a durable rebound or a temporary blip. The 4.5-month supply suggests continued seller advantage, but a shift toward a 5- to 6-month balanced market remains a key benchmark for future stability.

New York Post