Sales of existing homes increased 0.8% in May after months of decline, showing rises in the Northeast, Midwest and South. There was a dip in the West.

The numbers, published in a release from the National Association of Realtors (NAR), also show a 0.7% decrease in existing-home sales, with contraction in the West and South counteracting the progress made in the Northeast and Midwest.

NAR Chief Economist Lawrence Yun attributes the “relatively subdued sales” to persistently high mortgage rates, predicting 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 in the statement. “If mortgage rates decrease in the second half of this year, expect home sales across the country to increase due to strong income growth, healthy inventory, and a record-high number of jobs.”

Yun’s focus on interest rates is no surprise, furthering sentiments made about cutting rates by Fed Governor Christopher Waller, and recent attacks on Federal Reserve Chairman Jerome Powell by Federal Housing Finance Agency Director Bill Pulte and by President Trump.

The slight monthly existing home increase comes after sales fell in April 0.5%, and 5.9% in March.

The year-over-year figures in existing-home sales are still decreasing, however, with a 0.7% decrease in May, down from 4.06 million in May 2024.

The growth in inventory continued, showing a 6.2% increase in total housing inventory up from April, and up 20.3% since May 2024.

Median existing home prices for all housing types did set a record high for the month of May at $422,800, making it the 23rd consecutive month of year-over-year price increases. This is up 1.3% from one year ago ($417,200).