By Lucia Mutikani
WASHINGTON, July 9 (Reuters) - U.S. existing home sales unexpectedly fell in June as tight inventory boosted house prices to a record high and the Middle East conflict kept mortgage rates elevated, pushing potential buyers to the sidelines.
The report from the National **** ociation of Realtors on Thursday underscored the growing affordability hurdle faced by many young people pursuing the so-called American dream of homeownership. Still, economists expected the housing market to make a small contribution to economic growth in the second quarter for the first time in more than a year.
The U.S. Congress recently passed a bipartisan housing affordability bill, which includes measures to restrict single-family homeownership by investment firms and waive or speed up environmental reviews for construction projects. President Donald Trump has declined to sign the bill until a separate voting bill is passed.
"Affordability challenges are most acute for lower-income households and first-time buyers," said Nancy Vanden Houten, lead U.S. economist at Oxford Economics. "Homebuying is much more affordable for upper-income households, who are likely to be homeowners, than for younger, renter households."
WASHINGTON, July 9 (Reuters) - U.S. existing home sales unexpectedly fell in June as tight inventory boosted house prices to a record high and the Middle East conflict kept mortgage rates elevated, pushing potential buyers to the sidelines.
The report from the National **** ociation of Realtors on Thursday underscored the growing affordability hurdle faced by many young people pursuing the so-called American dream of homeownership. Still, economists expected the housing market to make a small contribution to economic growth in the second quarter for the first time in more than a year.
The U.S. Congress recently passed a bipartisan housing affordability bill, which includes measures to restrict single-family homeownership by investment firms and waive or speed up environmental reviews for construction projects. President Donald Trump has declined to sign the bill until a separate voting bill is passed.
"Affordability challenges are most acute for lower-income households and first-time buyers," said Nancy Vanden Houten, lead U.S. economist at Oxford Economics. "Homebuying is much more affordable for upper-income households, who are likely to be homeowners, than for younger, renter households."
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