Elevated Rates are Challenging Affordability Conditions
High mortgage rates and economic uncertainty continued to sideline buyers in May, causing new single-family home sales to fall 13.7% to an annual rate of 623,000—the slowest since October 2024. The South saw the steepest drop at 21%, despite widespread use of builder incentives, with 37% of builders reporting price cuts. Overall affordability challenges remain a key factor in the housing market slowdown.
