Houtan HormozianExpert on Real Estate, Finance and PropTech

Housing Market Slowing Down? The Latest Data Says Otherwise

23 Jun 2026 · 2 min

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1:43

In this market commentary, the speaker challenges the notion that the U.S. housing market has fully stalled. He notes that single‑family home construction fell 1.9% in May, reflecting higher building costs and elevated mortgage rates that strain affordability. Contrasting this, pending home sales rose 3.8% month‑over‑month and 4.8% year‑over‑year, reaching a six‑month high, indicating strong buyer demand. Mortgage activity showed mixed signals: purchase applications increased 3%, refinance applications were up 17% from a year ago, yet overall weekly mortgage applications slipped 3.8% from the prior week. On the macro side, the Federal Reserve kept interest rates unchanged at its June meeting but warned that further hikes remain possible as it seeks to tame inflation. Retail sales outperformed expectations in May, marking the fourth consecutive month of solid consumer spending, suggesting underlying economic resilience despite higher gas prices. Additionally, oil prices fell sharply after Iran and the United States signed a memorandum of understanding allowing commercial traffic through the Strait of Hormuz, a development that could ease inflation pressures. The speaker concludes that while challenges persist, the data reveal continued activity and resilience in the housing market, and invites viewers to discuss the implications for their personal situations.

Chapters

Think the housing market has completely slowed down? Not exactly. Single-family home construction actually fell 1.9% in May as higher building costs and elevated mortgage rates continued to impact affordability. But at the same time, pending home sales moved in the opposite direction. They climbed 3.8% from the previous month and were up 4.8% compared to the same time last year, reaching their highest level in 6 months. Mortgage activity was a bit mixed. Purchase applications increased 3%, and refinance applications were up 17% from a year ago. But overall, mortgage application volumes slipped 3.8% from the prior week. On the economic side, the Federal Reserve left interest rates unchanged at its June meeting. However, officials indicated that additional rate hikes could still be on the table later this year as they continue working to bring inflation under control. Retail sales also came in stronger than expected in May, marking the 4th straight month of solid consumer spending. That's a sign the economy is still showing strength, even with higher gas prices. And in another interesting development, oil prices dropped sharply after Iran and the United States signed a memorandum of understanding that allows commercial traffic to move through the Strait of Hormuz. So, while there are definitely challenges in the market, There are also signs of continued activity and resilience. If you'd like to talk about what these trends could mean for you, feel free to reach out anytime.