WASHINGTON - Contracts to buy U.S. previously owned homes unexpectedly fell in May, indicating sales could remain subdued for a while as potential buyers grapple with higher mortgage rates and prices.
"The market is at an interesting point with rising inventory and lower demand," said NAR Chief Economist Lawrence Yun.The housing market has been thumped by a resurgence in mortgage rates, with sales and home building slumping in May. "The first half of the year did not meet expectations regarding home sales but exceeded expectations related to home prices," said Yun. "In the second half of 2024, look for moderately lower mortgage rates, higher home sales and stabilizing home prices." -- In many parts of China, the warehouses and industrial parks that used to be a magnet for international investors are grappling with a surprising slowdown in business activity.