US Housing Market Faces Decline in New Home Sales Amid High Mortgage Rates

Sales of new single-family homes hit a six-month low in May as elevated mortgage rates deter buyers and inventory levels rise.

New home sales fell 11.3% in May, reaching an annual rate of 619,000 units, the lowest since November.
The median price of new homes dropped to $417,400, while existing home prices reached a median of $424,500.
High mortgage rates, averaging over 7%, have significantly reduced buyer affordability and demand.
Several major US cities, including Miami and Denver, saw notable declines in home prices year-over-year.
Builders are focusing on smaller, more affordable homes to attract buyers amid rising supply and cooling prices.