Home sales give way as prices enter unprecedented territory

By ALEX VEIGA
AP Business Writer

Sales of previously occupied U.S. homes slowed for the fourth consecutive month in May as climbing mortgage rates and prices discouraged many would-be buyers. The National Association of Realtors said Tuesday that existing home sales fell 3.4% last month from April to a seasonally adjusted annual rate of 5.41 million. Sales fell 8.6% from May last year. The national median home price jumped 14.8% in May from a year earlier to $407,600, an all-time high. The housing market, a crucial part of the economy, is slowing as homebuyers facing sharply higher home financing costs than a year ago following a rapid rise in mortgage rates.