WASHINGTON—Sales of previously owned U.S. homes declined in May for the second consecutive month, signaling that a runup in prices, rising mortgage rates and limited inventory may be holding down home purchases during the spring buying season.
Existing-home sales dropped 0.4% in May from the prior month to a seasonally adjusted annual rate of 5.43 million, the National Association of Realtors said Wednesday. Economists surveyed by The Wall Street Journal had expected sales to increase to a 5.54 million annual rate last month.
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