Sales of previously owned homes fell to a 6 month low in May and prices dropped 4.6%from a year ago. The National Association of Realtors said on Tuesday that sales dipped 3.8% month over month to an annual rate of 4.81 million units. This is the lowest since November.

This is the second straight month of declines. The drop was smaller than economists had expected, but the April sales figure was revised lower, leaving a report that was largely in line with expectations in financial markets. Indications are pointing to a struggling housing market.

The drop in homes sales may eventually have an effect on homeowners ability to obtain financing. This dips may cause lenders to tighten up guidelines even more so. Lenders may become even more hesitant on lending money making it more difficult for homeowners to take advantage of record low mortgage rates.

Homeowners that can qualify should consider speaking with their mortgage professional to better understand if refinancing make sense for them.
pointing to a housing market still struggling to regain its footing.