Home Sales Fall as Would-Be Buyers Face High Rates, Low Supply

Sales of previously owned homes fell in June as higher mortgage rates and a shortage of available properties frustrated buyers.

Elevated mortgage rates are making home purchases less affordable, keeping many buyers out of the market and reducing demand. At the same time, the higher rates are discouraging homeowners from selling, limiting the supply of homes for sale.

The drop in both demand and supply means that the number of home sales has declined, but prices haven’t fallen much. In many parts of the country, buyers who can afford to stay in...