Home sales dipped in July, a month defined by steadily increasing mortgage rates, the National Association of Realtors reported Tuesday.
Home sales dipped modestly in July, a month defined by steadily increasing mortgage rates, the National Association of Realtors reported Tuesday.
Existing-home sales dropped to a seasonally adjusted annualized rate 4.06 million in July. That's 1.7% below where they were in June but up 0.7% from a year ago. While the data reflect surprising stability in home sales despite the high mortgage rate environment, there's quite a bit of variation between markets, said NAR Chief Economist Lawrence Yun.
"Still very stable home sales pattern, I would say, even with these declines," Yun said in a press call Tuesday morning. The market still shows "stabilization conditions," he said, noting home sales are still tracking 2.4% above where they were in the first seven months of 2025.
NAR's data show a 1.9% decrease in sales month over month for single-family homes. Though, the 3.69 million sales annualized is up 0.8% versus July 2025. The median single-family home price is still up 1.9% from last year to $440,300. Condos sales were unchanged on a monthly and annual basis, though the median price is up 2.2% to $371,800.
"We are doing marginally better in terms of home sales compared to last year, but I think the big story for the housing market is even though home sales are stable, mortgage rates have been changing," Yun said.
The 30-year fixed-rate mortgage has been on a steady upward march for six weeks—rising from 6.43% July 2 to 6.69% August 6. That's the highest it's been since July 2025, according to Freddie Mac.
The Realtor.com 2026-Q2 Market Clock Report showed that there is wide regional variation in buyer-seller dynamics. The Hottest ZIP Codes report shows competitive markets concentrated in the Northeast and Midwest.
Regional variation
For much of 2026, the housing market has varied by region. That trend continued in July.
Month-over-month, home sales increased 2% in the Northeast, where the median price is up 5.2% to $563,800 year-over-year. Sales were down in both the Midwest by 2% and the South by 4.1%. The West saw sales largely unchanged.
That helped tick affordability up in each market, most sharply in the West where it grew 7.3%. The Northeast improved 1.5%, the Midwest 4.0% and the South 6.1%.
The Florida market was a standout, Yun said on the call, noting a "strong increase in home sales along with price recovering." This time last year that housing market was in decline. NAR also determined it remains king for international buyers despite a sharp nationwide decline.
And, the upper-end market, including homes over $1 million, are moving 15% over last year, Yun said. But he noted the K-shaped economy as consumer sentiment more broadly remains low.
First-time homebuyers declined from 33% to 29% year-over-year. "Not a good figure," Yun said, because a healthier ratio of first-timers is closer to 40%.
Existing-home sales dropped to a seasonally adjusted annualized rate 4.06 million in July. That's 1.7% below where they were in June but up 0.7% from a year ago. (Adobe Stock) Unsold inventory decreased 1.9%. to 1.54 million homes on the market, a 4.6-month supply, NAR found. That's down just a bit from a year ago.
That data, Yun said, should be a warning against speculation of bear market conditions. Given sellers are as skittish as buyers, there's not likely to be a notable decrease in home prices. A Realtor.com® economist suspects the same.
Realtor.com chief economist, Danielle Hale, notes that July pending data showed gains. But the fact that inventory gains slowed both in June and in July shows some hesitance among sellers. That could counteract the softer housing demand, and won't shift the market too far into buyer territory.
"The pace of growth cooled notably, suggesting that the upward pressure in mortgage rates and softening consumer confidence are weighing on households and home sales," Hale says of pending sales.