Purchase applications slowed to their lowest level since May as economic worries dampened activity, the Mortgage Bankers Association said. 

Chicago’s housing inventory continues to rise, thanks in part to a boost in new-home construction in the market.

May’s 1.8% monthly gain follows a 6.3% drop in April, the National Association of REALTORS® said. 

The pace of home-price appreciation slowed to its most modest pace since 2023, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index. 

The median-sales price for an existing home rose 1.3% year over year to $422,800. 

Inventory was up statewide and in Chicagoland but down within city limits. 

Nationally, home sales slid 3.5% year over year but rose 8.6% month over month, RE/MAX said. 

Homebuilder sentiment recently reached its third-lowest level since 2012. 

The Mortgage Bankers Association said the post-Memorial Day increase came despite economic uncertainty and largely static interest rates. 

The Northeast and Midwest remained strong, while Florida, which saw a major runup in prices in recent years, continued to cool. 

Chicago’s housing inventory is on the rise, thanks in part to a boost in new-home construction in the market.

The 6.3% month-over-month decline was the steepest the U.S. market has seen since September 2022. 

At the same time, the pace of home sales continued on its downward trajectory. 

In Chicago, home prices surged 6.5% year over year in March — the second-highest gain in the index after New York — and rose 1.17% month over month. 

The summer is expected to bring an uptick in the pace of home sales, the association said. 

Nationally, home sales slid 1.4% year over year but increased 11.3% month over month, RE/MAX said.