New Home Sales Drop Sharply in May In May 2025, new home sales in the U.S. fell by 13.7% month-over-month, pushing the inventory of unsold homes to a three-year high. According to data from the U.S. Census Bureau and analysis by CNBC, high mortgage rates—hovering near 7%—continue to pressure buyers. But there’s more to this than just rates. Many prospective buyers simply can't meet today’s home prices, particularly in large urban markets. A Price Problem, Not Just a Rate Problem While mortgage rates in the 6–7% range aren’t historically unusual, what is unusual is the disconnect between income and housing costs. In cities like Los Angeles and San Francisco, even so-called “starter homes” now top $1 million. A household would…
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