The National Association of Home Builders index rose to 37, marking 25 consecutive months below the key breakeven threshold.
Rising mortgage rates and global energy disruptions fuel inflation, which directly dampens consumer demand for new properties.
Experts note that recent long-term interest rate hikes create significant, ongoing affordability challenges for prospective buyers nationwide.
To stimulate sales, nearly one-third of builders reduced prices, while 61% offered various financial incentives this month.
Measures for current sales, future expectations, and prospective buyer traffic all posted modest gains compared to April.
Overall, existing home sales hover near historic lows, matching the sluggish pace of the late-2000s financial crisis.
The Census Bureau will release new housing construction data this Thursday, potentially signaling future building trends.
