U.S. home resales jumped unexpectedly by 2.6 percent to a record high in May as an improving job market fueled home buying while mortgage rates remained relatively low, a trade association said Friday.
Sales of previously owned homes rose to a seasonally adjusted annual rate of 6.80 million units in May from a downwardly revised 6.63 million unit pace in April, the National Association of Realtors said.
Analysts had been expecting a 6.50 million unit rate.
“You’ve got the best of all worlds -- you’ve got a growing economy that’s creating jobs, you’ve got low interest rates. The stars are still aligned for the housing sector,” said NAR chief economist David Lereah.
Inventories in May rose by 0.8 percent to 2.38 million homes available for sale, or a 4.2 months’ supply at the current sales pace.
The median sales price of a pre-owned home also climbed 10.3 percent from the same period a year ago to $183,600.
Recent housing data have been strong, a trend economists have attributed in part to buyers rushing to purchase before mortgage rates rise.U.S. home resales jumped unexpectedly by 2.6 percent to a record high in May as an improving job market fueled home buying while mortgage rates remained relatively low, a trade association said Friday.
Sales of previously owned homes rose to a seasonally adjusted annual rate of 6.80 million units in May from a downwardly revised 6.63 million unit pace in April, the National Association of Realtors said.
Analysts had been expecting a 6.50 million unit rate.