US Existing Home Sales Drop to Three-Month Low as High Rates Bite

Sales of existing homes in the United States fell to a three-month low in July as elevated prices and mortgage rates continued to weigh on the housing market. According to the National Association of Realtors, existing-home sales declined 1.7 percent month-over-month to a seasonally adjusted annual rate of 4.06 million. The figure marked a modest 0.7 percent increase from the same period a year earlier. Persistent affordability challenges kept many potential buyers on the sidelines despite some year-over-year stability.

The median sales price rose 2 percent from a year ago to $434,100, extending a streak of year-over-year price gains to 37 consecutive months. Inventory stood at 1.54 million units at the end of July, representing a 4.6-month supply of homes. That level remains relatively tight by historical standards and continues to support upward pressure on prices even as sales volume softens. Mortgage rates hovering around 6.5 percent have been a primary constraint on demand.

NAR Chief Economist Lawrence Yun described the market as relatively stable on a year-to-date basis, with sales up 2.4 percent so far in 2026. He noted that activity would strengthen significantly if average mortgage rates returned closer to 6 percent. The latest data underscore the ongoing tension between high borrowing costs, elevated home values, and limited supply that has defined the housing market for much of the past several years.