Zillow's May Market Report: The housing recovery is back on pause

New listings and sales fall behind 2025 as mortgage rates rise past 6.5% SEATTLE, June 4, 2026 /PRNewswire/ -- Home sales and new listings fell behind last-year levels in May as mortgage rates steadily rose, according to the Zillow® May Market Report. New listings have historically peaked in May or June but sellers pulled back this May; new listings ticked down 0.8% month over month, and now stand 4.1% lower than last year.