Purchase applications slowed to their lowest level since May as economic worries dampened activity, the Mortgage Bankers Association said. 

Purchase applications hit their highest level since February 2023. 

Home sales were up 8.4% year over year, while the median sales price slid 2.8%. 

At the same time, houses spent longer on the market while inventory surged.

May’s 1.8% monthly gain follows a 6.3% drop in April, the National Association of REALTORS® said. 

The pace of home-price appreciation slowed to its most modest pace since 2023, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index. 

The median-sales price for an existing home rose 1.3% year over year to $422,800. 

Nationally, home sales slid 3.5% year over year but rose 8.6% month over month, RE/MAX said. 

Homebuilder sentiment recently reached its third-lowest level since 2012. 

The Mortgage Bankers Association said the post-Memorial Day increase came despite economic uncertainty and largely static interest rates. 

Negotiations over prices and fees are becoming a regular part of the sale process, the MLS said in its monthly snapshot. 

The Northeast and Midwest remained strong, while Florida, which saw a major runup in prices in recent years, continued to cool. 

At the same time, existing-home sales declined, and days on market increased.

The 6.3% month-over-month decline was the steepest the U.S. market has seen since September 2022. 

In Atlanta, home prices rose 2.46% year over year and 0.88% month over month in March.  

Nationally, home sales slid 1.4% year over year but increased 11.3% month over month, RE/MAX said.