According to the S&P Cotality Case-Shiller Home Price Index, existing home sales rose 3.2% in May to a five-month high of 4.17 million. The spring selling season initially started slowly before gaining traction towards the end. Chicago continued to lead in existing home sales, followed by New York City and Cleveland. Meanwhile, pending home sales climbed 3.8% with a 4.8% year-over-year gain.
Looking ahead, mortgage rates have hovered near 6.5% for six consecutive weeks, pushed higher by renewed inflation concerns and elevated energy prices. At the same time, listing prices have fallen year over year for seven straight months, inventory is running above year-ago levels in many markets and affordability has continued to improve subtly as incomes outpace home price gains.
