The American dream of homeownership keeps getting more expensive, and the numbers just got uglier. Existing-home sales dropped 2.4% month-over-month in June, landing at a seasonally adjusted annual rate of 4.09 million units, according to the National Association of Realtors.
That marks the lowest sales pace since September 2024. With mortgage rates stubbornly hovering around 6.5% and the median home price climbing to a record $440,600, the math simply doesn’t work for a growing number of would-be buyers.
The affordability wall
Inventory levels currently sit at 4.6 months of supply. While that’s an improvement from the extreme scarcity seen in recent years, it’s still below the six-month threshold that economists generally consider a balanced market. Limited stock keeps pushing prices higher even as fewer transactions close.
NAR Chief Economist Dr. Lawrence Yun pointed to the sensitivity of buyers when it comes to affordability conditions driven by rate fluctuations. The message is clear: even small rate movements are enough to push fence-sitters back to the sidelines.
