New-home completions rose during the month, however, with the increased inventory representing a rare bright spot in an otherwise gloomy government report. 

Mortgage lending took a nose dive across the U.S. in the first quarter of 2022

Redfin economists say they expect the cooldown in budgets to lead to a cooldown in price growth over the next few months. 

Worsening affordability challenges are affecting first-time homebuyers

New listing activity was vibrant during the first week of June, although it trailed the previous year’s numbers by 4.4%, according to the Houston Association of REALTORS®.

May home sales maintained a healthy pace despite climbing housing prices and mortgage interest rates. And, due partly to an increase in new listings, housing inventory reached its highest level of the year, HAR reports.

The shift comes at a great cost as rising mortgage rates continue to keep buyers out of the market.

Nationally, the index posted its highest annual increase ever.

With affordability reduced, some buyers are pulling back from the market forcing sellers to adjust their price expectations.

Nevertheless, home prices are expected to continue rising through the end of the year, according to the National Association of REALTORS®.