Sales of existing homes remained stagnant in May, staying near a 30-year low, according to the National Association of Realtors (NAR).

The seasonally adjusted annual rate of 4.11 million units represented a marginal decline of 0.7% from April, with a 2.8% drop compared to May of the previous year.

This sluggish performance coincided with a record-high median home price and elevated mortgage rates.

Rates for the 30-year fixed loan surged from just under 7% to over 7.5% in mid-April before slightly easing back in May, currently hovering around 7%.

Lawrence Yun, NAR’s chief economist, expressed disappointment in the lack of recovery in home sales despite expectations for a spring rebound, CNBC has reported.

Notably, home inventory saw a significant increase of 6.7% month-over-month and 18.5% year-over-year, yet it remains low at a 3.7-month supply at the current sales pace.

Yun anticipates that growing inventory could potentially stimulate sales and moderate price increases in the coming months, offering more options for prospective buyers.

Written by B.C. Begley