Sales of previously owned homes fell in June while prices climbed to a record high, as high mortgage rates and limited supply continued to pressure buyers.
Existing-home sales dropped 2.4 percent from May to a seasonally adjusted annual rate of 4.09 million, the National Association of Realtors said Thursday. Sales were still 2.8 percent higher than in June 2025.
The June figure came in below economists’ expectations of about 4.21 million, according to FactSet, as the housing market remained stuck near the slow pace seen over the past several years.
Home sales have hovered around a 4 million annual pace since 2023. That is well below the historic norm of about 5.2 million.
The slowdown came even as the median price of an existing home rose to $440,600 in June. That was up 1.8 percent from a year earlier and marked the highest level in records going back to 1999, according to NAR.
Home prices have now increased year over year for 36 straight months.
The housing market has been under pressure since mortgage rates began climbing from pandemic-era lows in 2022. Higher borrowing costs have reduced affordability and pushed many would-be buyers out of the market.
Many homes sold in June likely went under contract in April and May, when the average 30-year mortgage rate ranged from 6.23 percent to 6.53 percent, according to Freddie Mac data.
Mortgage rates have risen in recent months as long-term bond yields increased. Lenders use those yields as a guide when setting home loan rates. Still, mortgage rates remain below where they were a year earlier.
NAR Chief Economist Lawrence Yun said buyers remain highly sensitive to affordability conditions.
“The back-and-forth in monthly home sales activity, driven by mild fluctuations in mortgage rates, shows how sensitive home buyers are to affordability conditions,” Yun said in a statement.
Inventory also remained a concern. There were 1.56 million unsold existing homes on the market at the end of June. That was down 0.6 percent from May but up 1.3 percent from a year earlier.
At the current sales pace, that equals a 4.6-month supply of homes. A supply of about five to six months is traditionally viewed as balanced between buyers and sellers.
Yun said the market still needs a much larger increase in supply.
“Without a doubt, the affordability is a major challenge for people who want to become homeowners, which is the reason why we need more supply,” Yun said.
First-time buyers made up 33 percent of home purchases in June. That was down from 35 percent in May but higher than 30 percent a year earlier. Historically, first-time buyers have accounted for about 40 percent of home sales.
Prices varied by region. The Northeast saw the strongest annual price gain, with the median price rising 3.9 percent to $564,800. The Midwest rose 2.7 percent to $346,600. Prices in the South and West each rose 0.9 percent, reaching $377,700 and $633,600.
The latest data come as a bipartisan housing affordability bill awaits action from President Donald Trump. The 21st Century ROAD to Housing Act passed the Senate 85-5 and the House 358-32.
The bill includes a restriction on certain institutional investors that own at least 350 single-family homes from buying more existing homes. Supporters say the measure would help families compete with large corporate buyers. Critics warn it could reduce the number of homes renovated and returned to the rental market.