Sales of previously owned homes rose 2% in July compared with June to 4.01 million units, on a seasonally adjusted, annualized basis, according to the National Association of Realtors. Housing analysts had been expecting a slight decline. Sales were 0.8% higher than July 2024.

These sales are counted by closings, so contacts likely signed in May and June, when the average rate on the 30-year fixed mortgage was in decline. That rate exceeded 7% briefly in May and then ended June at 6.67%, according to Mortgage News Daily.

There were 1.55 million homes for sale at the end of July, an increase of 15.7% from the same month last year. At the current sales pace, that represents a 4.6-month supply. A six-month supply is considered balanced between buyer and seller.

Inventory is now at the high

See Full Page