U.S. Home Sales Decline Amid Record High Prices and Hopeful Market Rebound

U.S. existing home sales fell more than expected in June, despite a record high median house price. The decline marks the fourth consecutive monthly drop. However, improving supply and declining mortgage rates offer hope for a future rebound. Regional variations were significant, with the South and Midwest seeing the largest drops.

U.S. existing home sales experienced a sharper-than-anticipated decline in June, reaching the lowest level since December, despite a new record high median house price of $426,900. This represents the fourth straight monthly decline in home resales, as reported by the National Association of Realtors, amidst weak homebuilding and permits data.

Economists pointed to record-high home prices and high mortgage rates as key factors in the decline. Nancy Vanden Houten, senior economist at Oxford Economics, noted that recent drops in mortgage rates could support a modest rebound in home sales later this year.

The National Association of Realtors reported that the average rate on a 30-year fixed mortgage dropped to 6.77%, prompting cautious optimism for the market's recovery. However, regional disparities persist, with the South and Midwest facing the steepest declines in sales.

(With inputs from agencies.)