Home resales in May rose slightly, although they remained soft. The May increase is attributable to a dip in mortgage rates in March and early April that encouraged potential homebuyers to lock in a loan while rates were a bit lower. Buyers of single-family homes were ready. Home resales are mostly done with mortgages obtained a month or so before closing. The Freddie Mac weekly average rate for a 30-year fixed rate mortgage slipped as low as 6.62 percent in the April 10 week but jumped to 6.83 percent in the week after. Homebuyers continue to exercise patience until they can find the optimum combination of the right unit at the right price with an affordable mortgage.

NAR data on sales of existing homes in May show a 0.8 percent rise to 4.03 million units at a seasonally adjusted annual rate after an unrevised 4.00 million units in April. Sales of existing homes are down 0.7 percent compared to a year ago. The May sales level is above the consensus of 3.95 million units in the Econoday survey of forecasters.

The supply of homes for sale is up to 4.6 months' worth in May after 4.4 in April. It is now consistently back to levels consistent with supplies of homes before the pandemic started in 2020. Inventories remain relatively lean, especially for the most sought-after units. The median price of a home resale is $422,800 and is up 2.1 percent month-over-month and up 1.3 percent year-over-year. NAR Chief Economist Lawrence Yun noted that the average monthly mortgage payment was about $1,000 prior to the pandemic and is now over $2,000 a month. The NAR noted that prices have risen for 23 consecutive months.

Home resales are up in all four regions in May from the prior month. The Northeast is up 4.2 percent, the Midwest up 2.1 percent, the South is up 1.7 percent, and the West is up 5.4 percent.

Existing homes listed are on the market for an average of 27 days in May, down from 29 days in April, and up from 24 days in May 2024. The market remains brisk. First-time homebuyers account for 30 percent of all sales which is less than 34 percent in April and 31 percent a year ago.

Distressed property sales remain at low levels, however, there is an increase to 3 percent in May from 2 percent in April and May 2024.

Single-family homes resales are up 1.1 percent in May to 3.67 million units after 3.63 million units in April. These are up 0.3 percent from a year ago. Sales of multi-unit homes are down 2.7 percent to 360,000 in May after 370,000 in April and are down 10.0 percent compared to May 2024.

Sales expected to remain in the doldrums at an annual 3.95 million unit rate in May versus 4.00 million in April and 4.02 million in March. Home resales have been feeling the pinch of higher mortgage rates and low consumer confidence.

Existing home sales tally the number of previously constructed homes, condominiums and co-ops in which a sale closed during the month. Existing homes (also known as home resales) account for a larger share of the market than new homes and indicate housing market trends.

This provides a gauge of not only the demand for housing, but the economic momentum. People have to be feeling pretty comfortable and confident in their own financial position to buy a house. Furthermore, this narrow piece of data has a powerful multiplier effect through the economy, and therefore across the markets and your investments. By tracking economic data such as home resales, investors can gain specific investment ideas as well as broad guidance for managing a portfolio.

Even though home resales don't always create new output, once the home is sold, it generates revenues for the realtor. It brings a myriad of consumption opportunities for the buyer.

Refrigerators, washers, dryers and furniture are just a few items home buyers might purchase. The economic"ripple effect" can be substantial especially when you think a hundred thousand new households around the country are doing this every month. Since the economic backdrop is the most pervasive influence on financial markets, home resales have a direct bearing on stocks, bonds and commodities. In a more specific sense, trends in the existing home sales data carry valuable clues for the stocks of home builders, mortgage lenders and home furnishings companies.