US existing home sales rose 3.2% in May to a 4.17 million pace
Why it matters: Inventory stayed tight at a 4.5-month supply, pushing the median price to a record $429,300 for May.
Sales of previously owned US homes picked up more than expected in May as slightly lower mortgage rates in April helped bring buyers back into the market. Existing home sales increased 3.2% from April to a seasonally adjusted annual rate of 4.17 million units, the National Association of Realtors reported. Sales were also up 3.2% from a year earlier, the strongest annual pace since December. Inventory rose 3.3% from April to 1.55 million homes, equal to a 4.5-month supply, still below the six months often seen as a balanced market. The median existing-home price climbed 1.3% from a year earlier to $429,300, a record for the month of May. First-time buyers made up 35% of purchases, up from 30% a year earlier.