Record-breaking Home Prices Continue to Soar Amidst Supply Shortage

U.S. home prices reached a new record high in May, driven by a worsening shortage of available homes for sale. Despite mortgage rates hovering around 6.81%, nearly double what they were three years ago, home prices have remained resilient due to a lack of inventory. Sellers who locked in low mortgage rates before the pandemic have been reluctant to sell, leaving few options for eager buyers. Housing inventory levels have dropped in 95% of major markets, exacerbating the supply shortage. The Federal Reserve's interest rate hikes have cooled the market, but even as rates have been slow to retreat, home prices are on the rise again.