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Existing-home sales dip 1.7%, housing market struggles despite cheaper mortgages

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Sales of previously owned homes slipped 1.7% in June, reflecting ongoing weakness in the U.S. housing market despite a sharp drop in mortgage rates

The numbers: .

Sales increased 1.5% in the Northeast and 1.6% in the Midwest. They fell 3.4% in the South and 3.5% in the West.Big picture: New construction has tapered off from last year’s post-recession peak and sales of both new and previously owned homes have also flagged. Falling mortgage rates might help some, but the industry faces long-term problems that aren’t going away. Families are forming at a faster rate, but high prices and a dearth of available homes have stunted what should be notably stronger demand.

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