US home prices climb 1.6% in May as 30‑year mortgage rate reaches 6.58%

In May, U.S. home prices rose 1.6% year‑over‑year, driven largely by a shortage of existing homes for sale. The S&P CoreLogic Case‑Shiller index and FHFA data show the limited supply kept prices high even as borrowing costs increased. At the same time, the average rate on a 30‑year fixed‑rate mortgage climbed to 6.58%, the highest level in nearly a year, according to Freddie Mac. The higher rate adds roughly $120 to the monthly payment on a typical $400,000 house and each additional percentage point can raise payments by about $100. Economists such as Sam Khater of Freddie Mac note that while higher rates usually temper price growth, demand still outpaces new‑home supply, keeping the market tight for first‑time buyers.