US existing home sales fell in June, as persistently high mortgage rates continue to weigh on the real estate market, which remains mired in a prolonged slump.

The National Association of Realtors (NAR) released data on Thursday showing that existing home sales in June fell by 2.4% to an annualized rate of 4.09 million units, which is lower than economists' median estimate of 4.2 million units. “Due to slight fluctuations in mortgage rates, monthly performance of existing home sales remains volatile, indicating that buyers are very sensitive to affordability conditions,” NAR Chief Economist Lawrence Yun said in a statement. However, he added that recent job growth will continue to support the real estate market. The decline in sales in June weakened the recent recovery momentum in the U.S. existing home market. Previously, both existing home sales and signed contracts had shown an upward trend in recent months. However, as mortgage rates remain close to 6.6%, affordability is still the primary challenge faced by American homebuyers. NAR’s housing affordability index has improved compared to the same period last year but remains at its lowest level since August 2025. The data show that the median price of existing homes in June rose 1.8% year-on-year to $440,600, setting a new record high. Although home prices are still rising, the increase is far below the levels seen a few years ago. Meanwhile, existing home inventory for sale grew 1.3% year-on-year to 1.56 million units, but decreased slightly month-on-month, marking the first decline so far this year.