Sales of new U.S. single-family homes unexpectedly fell in May, weighed down by higher mortgage rates and prices, dampening hopes for a housing recovery this year after prolonged weakness.
The second straight monthly decline in sales reported by the Commerce Department on Wednesday underscored the challenges facing prospective homeowners. Economists and realtors say stubbornly high mortgage rates, which have increased in the wake of the U.S.-led war with Iran, were pricing out buyers. The U.S. Congress on Tuesday passed a bill to make housing affordable, by among others restricting single-family homeownership by Wall Street investment firms and waiving or speeding up environmental reviews for construction projects. Economists and housing advocates said more needed to be done.
