US existing homes sales plunge 3,4% in May

Sales were 8.6% lower than in May 2021. April’s sales were revised slightly lower as well.

This is the weakest reading since June 2020, which was during the early months of the Covid pandemic. Adjusting for that, it is the lowest since January 2020.

This reading is based on closings during the month, therefore representing contracts likely signed in March and April. During that time the average rate on the 30-year fixed mortgage rose from right around 4% to 5.5%. 

It is currently right around 6%, according to Mortgage News Daily. Rising rates, along with rapid home price appreciation and continued low supply, have given affordability a triple punch.

(source:CNBC)