An article summarized by Reuters:
U.S. existing home sales fell 1.7% in July to an annualized rate of 4.06 million homes, marking the second consecutive monthly decline. The drop was slightly smaller than economists expected, but higher mortgage rates are making it difficult for the housing market to gain momentum. The average 30-year fixed mortgage rate reached 6.69% last week, its highest level since July 2025.
The housing shortage is also keeping the market constrained. Existing home inventory fell 1.9% in July to 1.54 million units, leaving about 4.6 months of supply. Many homeowners are reluctant to sell because they currently have mortgages below 5%, limiting the number of homes available to buyers. Sales declined in the Midwest and South, rose in the Northeast and were unchanged in the West.
Despite weaker sales, home prices continued to rise. The median existing-home price increased 2% from a year earlier to $434,100, while homes stayed on the market for a median of 29 days. First-time buyers made up just 29% of purchases, well below the 40% share considered necessary for a healthy housing market. NAR Chief Economist Lawrence Yun said the market could see a significant boost if mortgage rates fall closer to 6%.
