Higher Mortgage Rates Temper Demand
U.S. existing-home sales declined in June 2026 as a modest uptick in mortgage rates weighed on buyer activity, underscoring the housing market’s continued sensitivity to affordability despite a resilient labor market and improving year-over-year purchasing conditions.
Existing-home sales fell 2.4% from May to a seasonally adjusted annual rate of 4.09 million units, though transactions remained 2.8% above the level recorded a year earlier. The monthly decline followed uneven regional performance, with gains confined to the Northeast while the Midwest, South and West all posted lower sales.
The average 30-year fixed mortgage rate rose to 6.49% during June from 6.44% in May, interrupting recent improvements in financing costs. Even so, borrowing costs remained below the 6.82% average seen one year ago, helping support stronger annual sales comparisons.
Home prices continued to reach new highs. The national median existing-home sales price increased 1.8% from a year earlier to a record $440,600, extending a streak of annual price gains to 36 consecutive months. While price appreciation has moderated, values continue to outpace historical norms as limited inventory constrains supply.
Inventory remained relatively tight despite modest improvements from last year. Total existing housing inventory slipped 0.6% from May to 1.56 million homes but was 1.3% higher than June 2025. At the current sales pace, the available supply equaled 4.6 months, essentially unchanged from a year earlier and still below levels typically associated with a balanced market.
Housing affordability improved compared with last year as wage growth outpaced home-price appreciation and mortgage rates remained below 2025 levels. The National Association of Realtors Housing Affordability Index rose to 102.3 from 95.5 a year earlier, with every major U.S. region posting annual gains.
Single-family home sales, which account for the majority of transactions, declined 2.4% during the month to an annualized pace of 3.73 million units but remained 3.3% above year-earlier levels. The median single-family home price climbed 1.8% to $446,400.
Condominium and cooperative sales fell 2.7% from May to an annual rate of 360,000 units and were also down 2.7% from a year earlier. The median condo price increased 1.6% to $380,000.
Regionally, the Northeast was the only area to record a monthly increase in sales, rising 2.1%, while activity declined 3.0% in the Midwest, 3.6% in the South and 1.3% in the West. On an annual basis, sales increased across every region except the Northeast, where activity was unchanged.
Market conditions remained relatively stable. Homes spent a median of 28 days on the market, one day fewer than in May. First-time buyers represented 33% of purchases, down from 35% the previous month but higher than a year ago. Cash transactions accounted for 25% of sales, while purchases by investors and second-home buyers edged down to 13% of total transactions.
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