Existing home sales in the United States fell 2.4% over the month to an annualized rate of 4.09 million units in June, below forecasts for 4.19 million. The June reading marked a decrease from 4.17 million in the previous month. Total existing home sales remained up 2.8% over the year. Home prices continued to rise, with the median sales price rising 1.8% over the year to $440,600. Total housing inventory slightly increased to a 4.6-month supply of unsold inventory, up from a 4.5-month supply in May and unchanged from a year ago.
The ABA Office of the Chief Economist views continued sluggish home sales as a headwind for overall credit demand. Elevated mortgage rates and affordability constraints can discourage both buyers and existing homeowners from moving, resulting in lower loan volumes, reduced fee income from mortgage originations, and dampened refinancing activity for banks. Slower turnover in the housing market may also negatively impact demand for residential construction loans and other banking services tied to real estate transactions.
