(WASHINGTON) -- Existing-home sales declined this June, according to the National Association of Realtors. Total existing-home sales dipped 1.2 percent to a seasonally adjusted annual rate of 5.08 million in June. National Association of Realtors spokesman Walter Molony believes an increase in home loan rates in high cost markets may be to blame.
"We may be seeing some minor impact from higher mortgage interest rates. Also, there was a slight pullback by investors. But we do see enough momentum in the market, even with rising mortgage rates. Affordability conditions are still favorable in most of the country," Molony said.
While June's home sale numbers are down from May's 5.14 million, the June statistics are still 15.2 percent higher than the 4.41 million-unit level in June 2012.
"Monthly sales dipped in every region but the Midwest, which was flat, but all the regions are showing strong double-digit sales increases from a year ago. In fact, sales have been trending well above year ago levels now for the past two years," Molony said.
"Occasional monthly dips are to be expected, even in an uptrend, but to put it in perspective sales are still at the second-highest pace in three and a half years," Molony added.
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