🏠 John's Finance Corner: Existing Home Sales Fall in June as Prices Hit Record High
Last week’s report on existing home sales revealed a sharper-than-expected decline in closings, with sales falling 2.7% in June compared to May. That brings the annualized pace down to 3.93 million units, the slowest since September 2024 and well below the 0.7% drop economists had forecast.
📉 Sales Slow, But Prices Climb
Despite the slowdown in transactions, the median home price hit a new record of $435,300 in June. It’s important to understand that this figure reflects the midpoint of homes sold—not a direct measure of appreciation or depreciation. While price cuts are occurring in many markets, the median is based solely on homes that closed during the month.
Lawrence Yun, Chief Economist at the National Association of Realtors, emphasized the long-term wealth-building power of homeownership, stating:
“The record high median home price highlights how American homeowner’s wealth continues to grow, a benefit of homeownership. The average homeowner’s wealth has expanded by $140,900 over the past five years.”
🏚️ Inventory Still Tight
Housing supply remains constrained:
- Total inventory: 1.53 million homes in June
- Active listings: Just 1.08 million (the rest are under contract)
- Year-over-year increase: Nearly 16%, but still well below pre-pandemic levels
This persistent undersupply, paired with pent-up buyer demand, continues to support elevated home prices—even as affordability challenges mount.
📊 A Pivotal Week for Economic Data and Mortgage Rates
This week brings a flood of high-impact economic releases that could significantly influence bond markets and mortgage rates. Among the key reports and events:
- Bond Auctions
- Consumer Confidence Index
- JOLTS Job Openings
- ADP Employment Report
- BLS Jobs Report
- Gross Domestic Product (GDP)
- Federal Reserve Rate Decision
- Fed Chair Powell’s Press Conference
- Personal Consumption Expenditures (PCE) Inflation
- Unemployment Rate
- Initial & Continuing Jobless Claims
- Hourly & Weekly Earnings
With bond yields and mortgage rates still elevated, this data-heavy week could bring volatility. Depending on the tone and outcome of these reports, we may see significant movement—either upward or downward—in rates and market sentiment.
🔍 Final Thoughts
While home sales have slowed, the housing market remains resilient in terms of pricing, largely due to tight inventory and long-term supply constraints. As new economic data rolls in, mortgage professionals and homebuyers alike should stay alert—this week could reshape the rate landscape.
John Lamberg
MORTGAGE LOAN ORIGINATOR
NMLS 189233
