News Flash

U.S. existing home sales fell 1.7% in July to a seasonally adjusted annual rate of 4.06 million units, according to the latest report released this morning by the National Association of REALTORS® (NAR). While this marks the second consecutive monthly decline, the pace narrowly edged out economic consensus forecasts of 4.05 million units. 

On an annual basis, transactions ticked up slightly by 0.7% compared to July of last year. 

💰 Record-High Home Prices Persist

Despite cooling sales volume, a lack of matching housing supply continued pushing property valuations upward: 

• Median Home Price: The national median price for an existing home rose 2% year-over-year to $434,100, setting an unprecedented level for the month of July. 
• Single-Family Properties: Single-family resales dropped 1.9% month-over-month to an annualized 3.69 million units, while the median price climbed to $440,300. 
• Condominiums & Co-ops: Condo volume remained perfectly flat month-over-month, though the median price gained 2.2% to land at $371,800. 

🛑 Mortgage Rates & The Supply Lock-in

Steep borrowing costs remain the primary hurdle freezing both buyers and potential sellers out of the market: 

• Rate Resurgence: The benchmark 30-year fixed mortgage rate marched upward for five consecutive weeks, hitting 6.69%. This is the highest rate level tracked since July 2025, driven higher by persistent inflation and bond market reactions to ongoing geopolitical friction. 
• The "Rate Lock" Effect: Homeowners with existing pandemic-era mortgages locked in below 5% are refusing to list their properties, choosing not to exchange low rates for today’s higher borrowing costs. 
• Unsold Inventory: Total housing inventory at the end of July stood at 1.54 million units, a 1.9% decline from June and 0.6% lower than last year. This represents a 4.6-month supply at the current sales pace, keeping the inventory well under the 5- to 6-month threshold required for a balanced market.