New home sales fall 7.3% in May, missing forecasts amid high mortgage rates.

New home sales in the U.S. dropped by 7.3% in May to a seasonally adjusted annual rate of 580,000, below the forecast of 638,000. This decline reflects ongoing challenges in the housing market, including a 6.44% average 30-year fixed mortgage rate, the highest since last August. Adjusted for population growth, new home sales are down 46.1% since 1963, indicating weaker demand relative to population size. Meanwhile, the median price of new homes rose slightly to $424,900 but showed a real price decline of 4.1% annually after inflation adjustment. These trends suggest continued pressure on housing demand and affordability.