WASHINGTON — Sales of previously owned U.S. homes rose in May to their fastest pace of 2026, signaling stronger activity in the housing market despite elevated mortgage rates and continued pressure from high home prices, according to data released by the National Association of Realtors (NAR) on Tuesday.
Existing-home sales increased 3.2% from April to a seasonally adjusted annual rate of about 4.17 million units, NAR said. The pace exceeded economists’ expectations and marked the strongest monthly sales level since December 2025. Sales were also up about 3.2% from a year earlier.
The gains followed a sluggish start to the spring selling season, with the housing market continuing to contend with affordability challenges that have weighed on demand since mortgage rates began rising sharply in 2022. Existing-home sales last year remained near multi-decade lows, and activity through the early months of 2026 had been subdued, according to NAR and industry data.
NAR said sales increased from a year earlier in much of the country, including the Midwest, South and West, while the Northeast recorded a decline. The organization reported that inventory levels also improved, giving buyers more options than were available a year ago, though the number of homes on the market remains below levels typical before the COVID-19 pandemic.
“More Americans are on the move, with home sales rising to the highest level since December,” NAR Chief Economist Lawrence Yun said in a statement. He added that improving affordability in some markets had helped support demand.
Home prices continued to climb, though at a slower pace than in previous years. NAR reported that the national median existing-home price in May rose about 1.3% from a year earlier to roughly $429,300, the highest median price recorded for the month of May in the association’s data series.
Mortgage borrowing costs remained a significant factor for buyers. Homes sold in May were generally placed under contract in March and April, when mortgage rates were lower than recent levels. Industry analysts said the trajectory of future sales will depend in part on borrowing costs and housing supply.
NAR also reported that first-time buyers accounted for about 35% of purchases in May, the largest share in several years, though still below historical norms. Inventory at the end of the month stood at roughly 1.55 million homes, according to the association.
The latest figures indicate that home-buying activity strengthened in May, while housing market conditions remain influenced by mortgage rates, home prices and available inventory.
