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U.S. Existing‑Home Sales Dip as Rates Rise and Inventory Tightens

Rising 30‑year mortgage rates near 6.7% are squeezing buyer affordability and could deepen the market stall unless borrowing costs fall or more homes come to market.

Overview

  • The National Association of Realtors said Tuesday that existing‑home sales fell 1.7% in July to a seasonally adjusted annual rate of 4.06 million homes.
  • The median resale price hit $434,100 in July, a 2.0% gain from a year earlier and the 37th straight month of year‑over‑year price increases.
  • Unsold inventory shrank to about 1.54 million homes, equal to roughly a 4.6‑month supply, leaving the market tilted toward sellers compared with the 5–6 months typical of a balanced market.
  • Freddie Mac reported the 30‑year fixed mortgage rate near 6.69%, its highest in roughly a year, and that rise has cut buyer power and pushed the share of first‑time buyers down to 29% from 33% in June.
  • Economists say the market has been stuck near a roughly 4 million annual sales pace since 2022 and that a sustained drop in rates toward about 6% or a meaningful increase in listings would be the most likely triggers for broader recovery.