Zillow: US home sales, new listings slip below 2025 levels as mortgage rates top 6.5%

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  • Zillow’s May 2026 market report flagged a renewed pause in the housing recovery as mortgage rates climbed above 6.5%.
  • New listings fell 4.1% year over year to 422,956; sales dropped 2.9% to 341,929 despite a 4.8% monthly rebound.
  • Active inventory rose 1% year over year to 1.36 million; the annual growth streak extended to 30 months as momentum slowed.
  • Typical U.S. home value rose 0.6% in May to USD 368,720; up 0.8% year over year.
  • Typical monthly mortgage payment increased 1.1% to USD 1,861; down 3.1% from a year earlier.


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