May home sales experience COVID slump

May home sales experience COVID slump

May home sales experience COVID slump
Sales of existing homes fell 9.7 percent in May from the previous month, according to a new report. Home buyers continued to adhere to stay-at-home orders during the month leading to decline. Previously owned homes dropped to a seasonally adjusted annual rate of 3.91 million, the lowest annualized sales activity since October 2010. This latest information comes from the National Association of Realtors.

June, however, shows promise as record low mortgage rates and an easing of shelter-in-place restrictions lure buyers back in to the market. The rebound is expected to last throughout the summer as pent up demand leads to a resurgence.

The coronavirus stopped cold a series of new records in the housing market earlier this year, including a 13-year high in home sales reached in February.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.625 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.