The US housing slump deepened this spring. Where does that leave home shoppers and sellers?

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Posted at 1:29 PM, Jul 09, 2024

LOS ANGELES (AP) — The nation’s housing market sales slump is dragging on into its third straight year, as evidenced by another weak spring homebuying season.

Sales of previously occupied U.S. homes fell in the March-May period from a year earlier, and early June data point to another down month.

The lackluster spring sales are a reflection of the affordability challenges many home shoppers face due to elevated mortgage rates, a shortage of properties on the market and record-high home prices.

Economists are projecting mortgage rates will ease modestly by the end of this year. But a small decline in rates may not be enough to improve affordability, and may drive prices higher.