May housing surge lifts existing-home sales to December-high pace

Existing home sales rose 3.2% in May to a 4.17 million annualized pace, the strongest since December, with inventory up 3.3% to 1.55 million and the median price at $429,300. The gain followed a downshift in mortgage rates in April that helped affordability, with first-time buyers at 35% of sales, higher-end homes remaining buoyant, and roughly a quarter of deals paid in cash. The market remains tight at about 4.5 months of supply, and foreclosures/underwater sales stayed around 1%, signaling solid homeowner finances.