US Existing Home Sales Fall for Second Straight Month in July as Mortgage Rates Bite

Existing home sales dropped 1.7% in July from the prior month, marking the second consecutive monthly decline, as elevated mortgage rates continued to sideline prospective buyers. The median home price climbed to $434,100, approaching a record high. The July pullback follows a steeper 2.4% decline in June, when sales fell to a seasonally adjusted annual rate of 4.09 million units.

Mortgage rates have been a persistent drag on the market, with the 30-year fixed rate rising to around 6.85% in late July, the highest level in over a year, driven in part by inflation concerns. Tight inventory and near-record home prices have compounded affordability pressures, leaving many buyers unable or unwilling to transact. The July sales figure came in better than some forecasts, with Seeking Alpha noting the drop was less than expected.