July Home Sales Decline Amid Rising Mortgage Rates

Existing-home sales in July experienced a modest decline, dropping to a seasonally adjusted annualized rate of 4.06 million, according to a report released Tuesday by the National Association of Realtors (NAR). This figure represents a 1.7% decrease compared to June's sales but shows a 0.7% increase when compared to the same period in the previous year. Despite the upward trend in mortgage rates, the overall stability of home sales has been noted, although significant variations exist across different housing markets. NAR Chief Economist Lawrence Yun described the sales pattern as "still very stable" in a press call, indicating that sales are tracking 2.4% higher for the first seven months of 2026 than they were during the same period in 2025. The data specifically showed a 1.9% month-over-month decrease in sales for single-family homes, with the annualized rate at 3.69 million, which is 0.8% higher than in July 2025. The median price for a single-family home saw a year-over-year increase of 1.9%, reaching $440,300. Sales of condominiums remained unchanged on both a monthly and annual basis, with their median price rising by 2.2% to $371,800. Yun highlighted that while home sales have shown resilience, the "big story for the housing market is even though home sales are stable, mortgage rates have been changing." The 30-year fixed-rate mortgage has been on a consistent upward trajectory for six weeks, climbing from 6.43% on July 2 to 6.69% by August 6. This rate marks the highest level observed since July 2025, as reported by Freddie Mac. Further analysis from the Realtor.com 2026-Q2 Market Clock Report reveals considerable regional disparities in buyer and seller dynamics, with competitive markets, as identified by the Hottest ZIP Codes report, predominantly concentrated in the Northeast and Midwest regions. Throughout much of 2026, the housing market has exhibited regional differences, a trend that persisted in July. Month-over-month, the Northeast region saw a 2% increase in home sales, accompanied by a 5.2% year-over-year rise in its median price to $563,800. Conversely, sales declined in other regions, though specific figures for these declines were not fully detailed in the provided text. The sustained increase in mortgage rates, coupled with regional market variations, suggests a complex and evolving landscape for potential homebuyers and sellers.