U.S. existing home sales climbed 3.2% in May, reaching a seasonally adjusted annual rate of 4.17 million units – the strongest pace since December 2024,according to the National Association of Realtors. the surge came alongside a record median price of $429,300, while mortgage rates slipped slightly from a year earlier, giving first‑time buyers a rare foothold in the market.

May’s 3.2% sales lift beats economists’ 4.07 million forecast

Data from the National Association of Realtors showed that May’s sales growth outpaced the 4.07 million unit pace economists had expected, marking a 3.2% year‑over‑year gain. The increase was broad‑based, with the Midwest, South and West all posting gains, while the Northeast lagged. As the report notes, year‑to‑date sales remain well below the historical norm of roughly 5 .2 million units, underscoring that the rebound is still tentative.

First‑time buyers make up 35% of purchases, highest since June 2020

First‑time buyer participation rose to 35% of all May transactions, the strongest share in more than three years, according to the NAR . lawrence Yun,NAR’s chief economist, highlighted that this group is benefiting from mortgage rates that have fallen to an average of 6.48% – down from 6.85% a year ago – and from price expectations that are becoming more realistic in many markets.

Inventory climbs to 1.55 million homes, still a fraction of pre‑pandemic levels

Realtor.com reported that the pool of homes for sale edged up 3.3% from April to 1.55 million units, representing a 4.5‑month supply at current sales speeds. That figure remains far short of the roughly 2 million homes that typified the market before COVID‑19, keeping pressure on buyers despite the modest rise.

Median price hits $429,300 – 35th straight month of gains

The national median sales price rose 1.3% from May 2023 to a record $429,300, marking the 35th consecutive month of annual price increases.. Yet Yun pointed out that price growth is now lagging income growth in many regions, a shift that could improve affordability even as the headline number climbs.

Who will drive the next move? Geopolitics, rates and a 50‑year mortgage idea

Uncertainty looms over the market’s trajectory. The report cites rising oil prices and higher long‑term bond yields linked to the war with Iran as factors that could push mortgage rates back up. Yun warned that a sustained drop toward a 6% 30‑year rate would be needed for a more robust recovery. Meanwhile, former President Donald Trump has floated a 50‑year mortgage concept,a policy idea that could lower monthly payments but also raise long‑term risk concerns.