Published June 25, 2025 07:49 pm est
by Richard F. Cason, 
Editor in Chief,
NewsMovesmarketsForex
Key Issues-
- U.S. existing-Home sales decline of 13.7% rate compared to previous month
- Seasonally adjusted annual rate of New home sales fell to 623,000
- Figures reflects a 6.3% drop compared to May 2024, when sales were recorded at 665,000
- Economists are closely analyzing these figures, particularly in light of the persistent high mortgage rates that have been hovering around 7%
- Economists also suggest that a decrease in mortgage rates could potentially revitalize buyer interest and stimulate sales, leading to a more robust housing market
U.S. Home Prices Take a Significant Dive May 2025
In May 2025, sales of new single-family homes in the United States experienced a notable decline, according to the latest data from the U.S. Census Bureau and the Department of Housing and Urban Development.
The seasonally adjusted annual rate of new home sales fell to 623,000, representing a significant 13.7% decrease from April’s rate of 722,000.
This figure also reflects a 6.3% drop compared to May 2024, when sales were recorded at 665,000.
The median sales price for new homes sold in May 2025 was $426,600, which is a 3.7% increase from April’s median price of $411,400 and a 3.0% rise from the $414,300 median price in May 2024.
The average sales price also saw an increase, reaching $522,200, up 2.2% from April and 4.6% from May 2024.
Rise Inventory of New Homes for Sale
The inventory of new homes for sale at the end of May 2025 stood at 507,000, which is a 1.4% increase from April’s estimate of 500,000 and an 8.1% rise from the 469,000 homes available in May 2024.
This increase in inventory translates to a supply of 9.8 months at the current sales rate, marking an 18.1% rise from April’s supply of 8.3 months and a 15.3% increase from the 8.5 months recorded in May 2024.
U.S. Mortgage Rates
Economists are closely analyzing these figures, particularly in light of the persistent high mortgage rates that have been hovering around 7%.
Bradley Saunders, an economist at Capital Economics, sites that the significant drop in new home sales effectively negates the positive trends observed in previous months.
He emphasized that buyer activity is heavily constrained by these elevated mortgage rates, which limit affordability for many potential homebuyers.
Stuart Miller, co-CEO of Lennar, a major homebuilder, echoed these sentiments, stating that the macroeconomic environment remains challenging.
He pointed out that high mortgage rates and consumer confidence issues are dampening actionable demand in the housing market.
As a result, some builders have begun to lower prices to stimulate sales, while others, like KB Home, have opted to raise prices, reflecting varying strategies in response to market conditions.
For more Developing intriguing US Economic Home Sales Stories be sure to visit our U.S. Home Sales Category Breaking News Here:
News Moves Markets Forex “real time digital currency news”, works to provide market intelligence, connecting our audience with a mix of the most latest insightful currency news in the Foreign exchange markets. Providing the Latest and the greatest in depth developing U.S. Home Sales stories and financial news to traders and investors around the continent.
“Connecting People to the markets through the power of information from a BLACK perspective’.
