Sales of previously occupied U.S. homes accelerated last month to their fastest pace since December, a sharp turnaround in demand after a lackluster start to the spring homebuying season.
Existing home sales rose 3.2% in May from the previous month to a seasonally adjusted annual rate of 4.17 million units, the National Association of Realtors said Tuesday. Sales also rose 3.2% compared with May last year.
Home sales increased from a year earlier in the Midwest, South and West, but fell in the Northeast, NAR said.
The latest sales figure topped the roughly 4.07 million pace economists were expecting, according to FactSet.
Home sales have been mostly hovering close to a 4-million annual pace going back to 2023, far short of the historic norm that is closer to 5.2-million.
Sales rose last month even as mortgage rates have continued to mostly trend higher this spring, although they remain below where they were a year ago.
Home prices continued to rise nationally last month. The U.S. median sales price increased 1.3% in May from a year earlier to $429,300, an all-time high for any May on data going back to 1999, NAR said. Home prices have risen on an annual basis for 35 months in a row.
Even so, home price growth is now lagging income growth in many areas. That, plus mortgage rates holding below where they were this time last year, is helping to improve affordability, giving the housing market momentum, said Lawrence Yun, NAR’s chief economist.
“I cannot definitively say if home sales are truly coming out of the slump, because we know that there’s still uncertainty related to the oil prices or how the mortgage rates will move,” Yun said, adding that he expects home sales will emerge from their multi-year slump if the average rate on a 30-year mortgage drops back closer to 6%.
The U.S. housing market has been in a slump since 2022, when mortgage rates began to climb from pandemic-era lows. Sales of previously occupied U.S. homes were essentially flat last year, stuck at a 30-year low. They have remained sluggish so far this year. They were flat in April after declining from a year earlier through the first three months of this year.
Years of soaring home prices, especially in the early part of this decade when rock-bottom mortgage rates fueled a buying frenzy, have left many would-be homebuyers frozen out of the market. And a chronic shortage of homes for sale nationally, due partly to years of below-average new home construction, has helped prop up home prices even in a multiyear sales slump.
Homes purchased last month likely went under contract in March and April, when the average rate on a 30-year mortgage ranged from 6% — close to its lowest level in three and a half years — to 6.46%, according to mortgage buyer Freddie Mac. The average rate was at 6.48% last week, down from 6.85% a year earlier.
While the average rate has remained below where it was a year ago, it has been mostly trending higher since the war with Iran began, disrupting the passage of tankers ferrying crude oil from the Persian Gulf to customers worldwide and driving oil prices sharply higher. Expectations of high oil prices as the war continues have pushed up the long-term bond yields that lenders use as a guide to pricing home loans, causing mortgage rates to climb.
“If not for the war-related spike in inflation, the average 30-year fixed mortgage rate could well be in the mid-to-upper 5’s,” said Ted Rossman, principal analyst at Bankrate.
Despite the uncertainty over mortgage rates, first-time buyers accounted for 35% of home purchases last month, the highest share going back to June 2020, Yun said. Historically, they made up 40% of home sales.
Those who can afford to buy at current rates are likely benefitting from buyer-friendly trends in many markets. In May, median list prices were down 2.4% from a year earlier, the steepest drop on data going back to 2017, according to Realtor.com.
They also have more homes on the market to choose from, although home inventory levels remain well below historical norms.
There were 1.55 million unsold homes at the end of May, up 3.3% from April and up 0.6% from May last year, NAR said. That’s still short of the roughly 2 million homes for sale that was typical before the COVID-19 pandemic.
May’s month-end inventory translates to a 4.5-month supply at the current sales pace. Traditionally, a 5- to 6-month supply is considered a balanced market between buyers and sellers.
Information sign about open house for home sale is seen outside of a home in Wheeling, Ill., Monday, June 8, 2026. (AP Photo/Nam Y. Huh)
For sale sign is seen outside of a home in Wheeling, Ill., Monday, June 8, 2026. (AP Photo/Nam Y. Huh)
WASHINGTON (AP) — House Republicans will look to get nearly $70 billion for immigration enforcement over the finish line Tuesday, enough to fund a pair of Homeland Security agencies through the next three years and the rest of President Donald Trump's time in office.
Speaker Mike Johnson will need near perfect attendance and unity on his side to complete weeks of action on the bill. The legislation got sidetracked when Republicans sought to include $1 billion for enhanced security on the White House grounds, including for Trump's new ballroom, and the Trump administration tried to create a nearly $1.8 billion fund to compensate allies of the president who claim they have been unjustly investigated and prosecuted. Those proposals proved politically toxic and were scrapped.
Now, the bill is focused entirely on immigration enforcement, a topic that Republicans have treated as a defining issue between the two major political parties and one they hope will carry them to victory in this year's midterm elections. The bill provides $38 billion for Immigration and Customs Enforcement, $26 billion for the Border Patrol and another $5 billion to cover unforeseen costs, fueling Trump's deportation agenda.
“It's long overdue,” said Johnson, R-La., of the bill. “We have to fund border security and immigration enforcement, and it's sad that Republicans have to do it on our own.”
The funding comes on top of the nearly $140 billion that the Republican-controlled Congress gave ICE and Customs and Border Protection last year as part of Trump's tax and spending cuts bill.
Democrats objected to giving the agencies more money without significant changes in the way they operate after the deaths of Alex Pretti and Renee Good in Minneapolis. For example, Democrats insisted that agents be required to display their ID badges during enforcement operations and that they get a judicial warrant before entering private property. Instead, the funding will come with virtually no strings attached.
House Democratic Leader Hakeem Jeffries vowed his party would oppose the package.
“We believe that taxpayer dollars should be used to make life more affordable for the American people – not give ICE another $70 billion blank check so that they can unleash brutality on American citizens and violently target law-abiding immigrant communities,” said Jeffries of New York.
The package is the result of a monthslong standoff in Congress after Democrats refused to fund the Department of Homeland Security in the wake of the immigration enforcement actions in Minneapolis and other American cities, leading to the longest shutdown in agency history.
Negotiations had been underway with the White House to alter ICE operations as Democrats were demanding. When those negotiations failed, Republicans turned to a complicated procedural maneuver to get around the filibuster and pass the immigration funding with no Democratic votes.
If approved, the package would next go to Trump for his signature, all but assuring an essentially uninterrupted flow of funds for his immigration enforcement and deportation agenda into 2029.
The Senate completed its work on the legislation last week during an all-night session that extended into the early morning hours Friday. The final 52-47 vote on the bill was nearly party line, with Sen. Lisa Murkowski of Alaska the only Republican to oppose it.
The money will come at a pivotal time for the Department of Homeland Security, which is under new leadership after Trump replaced Kristi Noem with new Secretary Markwayne Mullin in March.
While Mullin has vowed to keep the department out of the headlines, the administration is under pressure from anti-immigration advocates to deliver on Trump’s campaign promise of the largest deportation operation in American history.
So far, the administration has not hit its goal of 1 million deportations a year, but Trump’s border czar, Tom Homan, has promised more to come, including hinting at immigration enforcement actions in New York, the nation's biggest city, which is heavily Democratic.
At the same time, the administration is making it more difficult for legal immigrants to remain in the U.S. by working to end Temporary Protective Status, changing the processes for obtaining green cards and leaving some Dreamers — the young people who were brought illegally to the U.S. as children — reporting delays in renewing their status, which allows them to stay and work.
On the House side, Johnson has little margin for error. Republicans can afford to lose only a couple of votes if every lawmaker is present. GOP leadership opted to avoid any hiccups and sent lawmakers home last week rather than take up the bill early Friday once the Senate had completed its all-nighter.
The bill is just a slim package, without the hundreds of pages of details and directives that typically come from Congress when it provides funding for agencies.
Leading up to the vote, Democrats portrayed DHS as an agency that has used its new resources to buy private jets for its leadership, warehouse immigrants in deplorable conditions and attack U.S. citizens.
“To give these rogue agencies another $70 billion now when they still have $100 billion in the bank from last year would implicate all of us in the escalating corruption and shameful actions of this department," said Rep. Jamie Raskin of Maryland, the ranking Democratic member on the House Judiciary Committee.
Republicans countered that they were fulfilling their duty to safeguard the nation and support the men and women charged with enforcing the law.
“Democrats can say whatever they want, but what it’s about is public safety. What’s it about is keeping Americans safe,” said Rep. Michelle Fischbach, R-Minn.
Homeland Security Secretary Markwayne Mullin, lower left, testifies before the House Committee on Homeland Security during a hearing on the Fiscal 2027 budget request for the Department of Homeland Security, in Washington, Wednesday, June 3, 2026. (AP Photo/Cliff Owen)
Homeland Security Secretary Markwayne Mullin testifies before the House Committee on Homeland Security during a hearing on the Fiscal 2027 budget request for the Department of Homeland Security, in Washington, Wednesday, June 3, 2026. (AP Photo/Cliff Owen)
The U.S. Capitol is seen behind a light pole, on Capitol Hill in Washington, Wednesday, June 3, 2026. (AP Photo/Cliff Owen)
FILE - The seal of U.S. Department of Homeland Security is seen before a news conference at ICE Headquarters in Washington, May 21, 2025. (AP Photo/Jose Luis Magana, File)
FILE - Department of Homeland Security, Transportation Security Administration, Federal Air Marshals, patrol around Washington Dulles International Airport, in Chantilly, Va., Tuesday, March 24, 2026. (AP Photo/Manuel Balce,File)
