New home sales dipped in June, a sign of the lingering effects of elevated US interest rates
AFP

Existing home sales rose 1.3% in July according to statistics released on Thursday.

The National Association of Realtors report said the gain broke a streak of four consecutive monthly declines. Sales reached a seasonally adjusted annual rate of 3.95 million.

Despite the month-over-month growth, sales were down 2.5% from the same period a year ago when 4.05 million were sold.

The median existing-home sales price rose 4.2% from July 2023 to $422,600. It is the 13th consecutive month of year-over-year price gains.

The inventory of unsold existing homes edged higher by 0.8% from the prior month to 1.33 million at the end of July, or the equivalent of 4.0 months' supply at the current monthly sales pace.

Three out of four major U.S. regions registered sales increases while the Midwest remained steady. Year-over-year, sales rose in the Northeast and West but retreated in the Midwest and South.

"Despite the modest gain, home sales are still sluggish," said NAR Chief Economist Lawrence Yun. "But consumers are definitely seeing more choices, and affordability is improving due to lower interest rates."

First-time buyers were responsible for 29% of sales in July, identical to June but down from 30% in July 2023.

All-cash sales accounted for 27% of transactions in July, down from 28% in June but up from 26% one year ago.

Mortgage Rates

According to Freddie Mac, the 30-year fixed-rate mortgage averaged 6.49% as of August 15. That's up from 6.47% the previous week but down from 7.09% a year ago.

U.S.