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U.S. Resale Market Sees Sales Dip as July Prices Hit a Record

Rising mortgage rates and limited homes for sale are likely to keep transactions muted unless borrowing costs fall or more supply appears.

Overview

  • Existing‑home sales fell 1.7% to a 4.06 million annualized pace in July, while sales were up 0.7% from a year earlier and the median price reached a July record of $434,100.
  • Unsold inventory stood at about 1.54 million homes in July, equal to a 4.6‑month supply and down 1.9% from June, which leaves fewer choices for buyers.
  • Mortgage costs have climbed back toward the mid‑6% range with the 30‑year fixed rate near 6.69%, and first‑time buyers’ share dropped to 29%, removing many entry‑level purchasers from the market.
  • Economists say the July report, released Tuesday, reflects contracts signed weeks earlier and signals that a meaningful national rebound is unlikely without lower mortgage rates or a rise in new listings.
  • The market has hovered near a roughly 4 million annual sales pace since 2022 versus a historical norm near 5.2 million, which keeps upward pressure on prices as many owners hold low fixed rates and delay listing their homes.