Sales of existing homes in the United States declined unexpectedly in June, as limited inventory and elevated mortgage rates combined to cool buyer demand. According to data released Thursday by the National Association of Realtors, existing home sales fell 2.4 percent from the previous month, reaching a seasonally adjusted annual rate of 4.09 million units. This outcome contrasted with economists’ expectations of a modest increase to 4.20 million units.

The report highlighted ongoing affordability challenges, with house prices reaching record highs amid a shortage of available properties. These conditions, coupled with rising borrowing costs partly influenced by geopolitical tensions in the Middle East, have deterred many potential buyers, particularly younger individuals seeking to enter the housing market.

Despite the softness in home resales, many economists maintain that the housing sector is poised to contribute modestly to U.S. economic growth in the second quarter, potentially marking the first quarterly positive impact in over a year. However, the latest sales figures show that the market continues to struggle with persistent supply constraints and financial headwinds.

U.S. home sales have typically hovered around a 4 million unit annual pace in recent years, reflecting a challenging balance between demand and availability. The June decline underscores the difficulties faced by prospective homeowners amid a complex interplay of rising prices and elevated mortgage rates.