US home sales climbed 2.5% in May amid lower mortgage rates

WASHINGTON - U.S. home sales jumped 2.5% in May, as lower mortgage rates appeared to help buyers overcome affordability challenges.

The National Association of Realtors says that existing homes sold at a seasonally adjusted annual rate of 5.34 million last month, up from 5.21 million in April.

The recent gains likely came from reduced borrowing costs that made it easier to finance a home. Rates for the 30-year mortgage are averaging 3.84% this week, down sharply from 4.57% a year ago, according to the mortgage buying company Freddie Mac.

Still, the real estate market has yet to shake off last year's slump. Home sales fell 1.1% from a year ago.

The faster pace of sales also boosted prices. The median sales price in May was $277,700, a 4.8% increase from last year.