US housing market stalls as new single-family sales drop again

U.S. new single-family home sales fell 7.3% in May to a seasonally adjusted annual rate of 580,000, the second straight monthly decline and the lowest since January, as higher mortgage rates and prices restrain demand; inventory rose to 496,000 (the highest since July 2025), enough to take about 10.3 months to clear at the May pace. The drop occurred even as prices were largely flat on median terms and overall affordability remains a major hurdle, with economists warning the housing recovery may remain tepid into 2027. Regional results showed weakness in the West (seven-month low), declines in the South, and gains in the Northeast and Midwest, underscoring a uneven national picture amid higher borrowing costs and inflation pressures.