Mortgage rates averaged 7.06% in May, sidelining many potential home buyers, according to the National Association of Home Builders.
Sales of newly built, single-family homes in May fell 11.3% from April to a 619,000 seasonally adjusted annual rate, according to the U.S. Department of Housing and Urban Development.
New home sales in May were down 16.5% from a year earlier—the lowest pace since November 2023.
Regionally, year-over-year new home sales were up 6.0% in the Northeast, 25.2% in the Midwest and 6.3% in the West. New home sales were down 7.6% in the South.
Freddie Mac reported May’s average mortgage rate is the highest monthly average since November.
“Persistently high mortgage rates in May kept many prospective buyers on the sidelines,” NAHB Chairman Carl Harris said in a statement. “However, significant unmet demand exists, and we expect mortgage rates to moderate in the coming months, which will bring more buyers into the market.”
