Home Sales Fall in U.S.

Home sales fell 3.8 percent in the month of May to a seasonally adjusted annual rate of 4.81 million homes, the National Association of Realtors said today - which is far below the usual 6 million annual sales rate that's the norm in a healthy housing market.

Since the burst of the housing bubble in 2006, annual rates have fallen four times in the past five years. Sales are expected to level off at about 5 million a year, analysts say. The figure comes too close to 4.91 million homes sold in 2010, the worst sales rate in the past 13 years.

The depressed housing market has weighed on the broader economy. Declining home prices have kept people from selling their houses and moving to find jobs in growing areas. They have also made people feel less wealthy. That has reduced consumer spending, which drives about 70 percent of economic activity.

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