US Existing Home Sales Rise in July

The figures recently released by the National Association of Realtors break a four-month trend of declines

Sales of previously owned homes in the United States edged up in July, industry data showed recently, breaking a four-month trend of declines. Homebuyers in the world's biggest economy have been grappling with a surge in mortgage rates after the US central bank rapidly lifted the benchmark lending rate in 2022.

However, the popular 30-year fixed-rate mortgage ticked down slightly in late July, potentially offering some relief to real estate buyers. Existing home sales rose 1.3% from June to an annual rate of 3.95 million, seasonally adjusted, said the National Association of Realtors (NAR).

Modest Gain

• Mortgage rates have experienced a surge in the US since 2022
• The rate ticked down in July with existing home sales rising 1.3% from June to an annual rate of 3.95 million
• The median sales price for the month was $422,600 higher than July 2023 

This was slightly above a Briefing.com consensus of 3.9 million, and an uptick from June after four straight months of falling real estate sales. “Despite the modest gain, home sales are still sluggish,” said NAR chief economist Lawrence Yun, noting that the figures remain relatively low. "But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates," he said.

Compared with a year ago, sales of existing homes were down 2.5% according to the NAR. The median sales price was $422,600 in July, higher than the same month in 2023, and all four US regions saw price increases.

“Despite the modest gain, home sales are still sluggish. But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates.”

Lawrence Yun, Chief Economist, National Association of Realtors 

With the Federal Reserve widely expected to cut interest rates in September, buyers of real estate might be holding back in hopes of mortgage rates cooling further in the near future.

As of August 15, the 30-year fixed-rate mortgage averaged 6.5% according to Freddie Mac, down from 6.8% in late July. Housing inventory also edged up from June, NAR data showed.

"This is a glimmer of hope, not a turnaround signal," said economist Robert Frick of the Navy Federal Credit Union. "Home sales remain weak, but lower mortgage rates should bring more potential sellers off the sidelines," he added.