Existing home sales fall again as mortgage rates climb

U.S. sales of previously owned homes fell 1.7% in July to a seasonally adjusted annual rate of 4.06 million units, marking a second straight monthly decline, the National Association of Realtors reported Tuesday. Rising mortgage rates and tight supply continued to push potential buyers out of the market.

The average 30-year fixed mortgage rate has climbed 71 basis points since a Middle East conflict began in February, reaching 6.69% last week, the highest level since July 2025, according to Freddie Mac data. Economists said homeowners with mortgages below 5% are reluctant to sell, keeping inventory low even as prices remain elevated.

The median existing home price rose 2.0% from a year earlier to $434,100 in July. Homes priced at $250,000 and below accounted for most of the sales weakness amid a shortage of starter homes, while sales of homes priced above $750,000 posted double-digit growth. First-time buyers made up 29% of sales, down from 33% in June.

Housing inventory fell 1.9% to 1.54 million units, representing a 4.6-month supply at the current sales pace. Sales dropped in the Midwest and South, rose in the Northeast, and were unchanged in the West, while national sales were up 0.7% from a year earlier.

Read the full story at wtvbam.com.