Sales of previously owned homes in the United States showed a slight increase in May 2025 but remained at relatively low levels amid high mortgage rates near 7% and elevated home prices. The median asking price was $403,000, marking a modest 2.2% year-over-year increase, the smallest rise in nearly two years. Despite this, the median sale price reached a record high in the four weeks ending July 20, 2025, with a 1.6% year-over-year increase, significantly lower than the 5% to 6% growth seen throughout most of 2024 and early 2025. By June 2025, sales of previously owned homes fell to a nine-month low as potential buyers continued to be deterred by record prices and borrowing costs. The homeownership rate declined to 65% in the second quarter of 2025, the lowest level since late 2019, with drops observed across nearly all age groups, particularly among those aged 45 to 54. The housing market experienced its slowest spring season since 2012, despite some easing in mortgage rates and increased inventory, reflecting ongoing economic uncertainty and affordability challenges for buyers.