MNI BRIEF: US Existing Home Sales Fall 3.4% To 5.41M In May

U.S. existing home sales fell to a seasonally adjusted annual rate of 5.41 million in May, sinking 3.4% from a month earlier and down 8.6% from a year earlier, the National Association of Realtors said Tuesday.

Rising mortgage rates and sustained high inflation have prevented many consumers from purchasing a home, NAR chief economist Lawrence Yun told reporters. The median existing home price surpassed $400,000 for the first time, up 14.8% from a year ago.

The inventory of unsold existing homes rose to 1.16 million by the end of May, or the equivalent of 2.6 months at the current monthly sales pace.