Rising Rates Stall Housing Market Momentum Just After Closed Home Sales Hit Highest Level Since 2022
Redfin reports closed home sales jumped in May, reflecting April’s dipping mortgage rates and a strong labor market
But pending home sales were flat, a real-time reflection of May’s rising mortgage rates and economic uncertainty, which dampened buyers’ appetites
New listings rose to their highest level since 2022 as sellers tried to capture demand
U.S. existing-home sales jumped 2.8% month over month in May to their highest level since October 2022, according to a new report from Redfin, the real estate brokerage powered by Rocket. Overall home sales—including both existing and newly built homes—also rose to theirhighest level since October 2022, rising 3.8% month over month. While closed sales surged, pendingsales—a more current market indicator—flattened as mortgage rates rose.
