“More Americans are on the relocation, with home sales rising to the highest level given that December,” Yun said. “This is excellent news for the housing market and the economy. Improving affordability is assisting drive this momentum. Even with home loan rates ticking up compared to previously in the year, they stay lower than a year back and are essentially at the long-term historical average. Income gains are likewise surpassing home cost development by a little margin in many parts of the nation.”
Price and momentum
The average 30-year fixed-rate mortgage in May was 6.44%, according to Freddie Mac, up from 6.33% in April but below 6.82% a year back. Price improved year over year in all four regions, led by the West at 11.0%, the South at 8.4%, the Midwest at 6.6%, and the Northeast at 5.1%. The Housing Cost Index can be found in at 105.6, up from 97.5 a year ago.
Newbie homebuyers comprised 35% of sales, up from 33% in April and 30% a year earlier. That’s a friend that has actually struggled against prices and rate pressures, and the uptick is worth watching for pioneers constructing their purchase pipelines. The median time on market was up to 29 days from 32 days in April, though it was up somewhat from 27 days in Might 2025.
Cash sales held at 25% for the second consecutive month, while financier and second-home activity dropped to 14% from 16% in April. Distressed sales fell to just 1% of deals, below 2% in April and 3% a year earlier.
Yun indicated those numbers as a sign the marketplace is on a sounder footing than the price headlines typically recommend.