02:35 PM EDT, 06/23/2025 (MT Newswires) -- Home resales accelerated to a 4.03 million seasonally adjusted annual rate in May from a 4.00 million rate in April but were still down 0.7% from a year ago.

Three of the four US regions posted month-over-month sales gains in May, partially offset by a sharp decline in sales in the West region. There were year-over-year gains in two regions and declines in the other two.

"The relatively subdued sales are largely due to persistently high mortgage rates," said NAR Chief Economist Lawrence Yun. "Lower interest rates will attract more buyers and sellers to the housing market. Increasing participation in the housing market will increase the mobility of the workforce and drive economic growth."

Yun said that he expects improved home sales later in the year if mortgage rates decrease, supported by strong income growth and a high level of inventories.

The supply of homes for sale accelerated to a 1,540,000 level from 1,450,000 in April and was up 20.3% from a level of 1,280,000 a year ago.

The flash manufacturing reading from S&P Global remained at 52.0 in June, indicating modest expansion after regional data from the New York and Philadelphia Federal Reserve banks remained below the breakeven point.

The ISM's national manufacturing reading will be released on July 1.

Released at the same time, the flash services reading from S&P Global fell to 53.1 in June from 53.7 in May, suggesting further expansion. The ISM's services reading is scheduled for release on July 3.