US Home Prices Hit All-Time High as Sales Slow and Mortgage Rates Rise

Sales of previously occupied US homes fell in June while the national median home price climbed to a record high, deepening affordability challenges for prospective buyers already strained by elevated mortgage rates and persistent inflation.

Sales Fall Short of Expectations

Existing home sales declined 2.4% in June from May to a seasonally adjusted annual rate of 4.09 million units, the National Association of Realtors reported Thursday. The figure fell short of the roughly 4.21 million pace economists had expected, according to FactSet, though sales were up 2.8% compared with June of last year.

Home sales have remained largely stuck near a 4-million annual pace since 2023 — well below the historic norm of approximately 5.2 million — as elevated mortgage rates continue to sideline both buyers and sellers.

Median Home Price Reaches $440,600

Despite the slowdown in transactions, home prices continued to climb. The US median sales price rose 1.8% in June from a year earlier to $440,600 — an all-time high, according to NAR. It marks the 36th consecutive month of annual home price increases, underscoring how persistently supply constraints have kept values elevated even as demand has softened.

Mortgage Rates and Iran War Weigh on Affordability

Mortgage rates have trended higher in recent months after the war between the United States and Iran began stoking expectations of sustained inflation. While rates remain below their year-ago levels, the renewed upward pressure has added to the financial burden facing prospective buyers. Combined with US home prices at a record high, the affordability squeeze shows little sign of easing in the near term.