US existing-home sales rose to their highest level so far this year, even amid the fallout from the Middle East war.
The National Association of Realtors (NAR) said Monday that US existing-home sales reached 4.17 million units in May, up 3.2% from April. The volume was the highest since December last year and exceeded the analysts' forecast of 4.05 million units compiled by Dow Jones. Housing inventory rose 3.3% from the previous month to 1.55 million units.
The increase in US home sales is attributed to robust domestic economic activity that has continued even after the war with Iran erupted. Although mortgage rates rose due to the war, the impact on real estate market sentiment appears limited. According to Freddie Mac, the US state-backed mortgage company, the average rate on a 30-year fixed-rate mortgage rose 0.50 percentage point, from 5.98% at the end of February, just before the war, to 6.48% on the 4th of this month. This came as the yield on 30-year US Treasury bonds, the benchmark for mortgage rates, recently surged above 5% with no resolution in sight for the Middle East situation. The 30-year US Treasury yield at one point last month climbed to its highest level in 19 years, since 2007, just before the global financial crisis.
