Sales of existing homes in the United States fell for a second consecutive month in July 2026, underscoring the continued pressure that elevated mortgage rates and high home prices are placing on the housing market.
Existing-home sales declined 1.7% from June to a seasonally adjusted annual rate of 4.06 million, according to the National Association of Realtors (NAR). Sales were nevertheless 0.7% higher than a year earlier, while year-to-date sales were up 2.4%.
The July decline followed a 2.4% drop in June, marking two consecutive months of month-over-month declines in existing-home sales. The latest figures point to a housing market that has stabilized compared with a year ago but has yet to generate a sustained increase in transaction activity. Mortgage rates remain above 6%, while limited inventory and rising home prices continue to constrain buyers.
Lawrence Yun
“Home sales have been remarkably stable, even amid the rising mortgage rate environment of the past few months,” said NAR Chief Economist Lawrence Yun. “Year-to-date sales are up 2.4% and there’s no doubt that the housing market would be thriving if average mortgage rates were to return near 6%.”
The median existing-home price increased 2.0% from a year earlier to $434,100 in July, marking the 37th consecutive month of year-over-year price increases. The median price was $425,700 in July 2025.
Despite higher home prices, NAR’s Housing Affordability Index improved to 103.3 in July, up from 98.3 a year earlier. Affordability improved across all four major regions, with the index increasing 1.5% in the Northeast, 4.0% in the Midwest, 6.1% in the South and 7.3% in the West.
Total housing inventory declined 1.9% from June to 1.54 million units in July, representing a 4.6-month supply of unsold homes, unchanged from both June and July 2025. Inventory was 0.6% below its level a year earlier.
The combination of limited inventory and subdued sales has helped keep prices rising even as buyers face elevated financing costs.
Single-family home sales fell 1.9% from June to an annual rate of 3.69 million in July. Sales were nevertheless 0.8% above July 2025. The median single-family home price increased 1.9% from a year earlier to $440,300.
Condominium and cooperative sales were unchanged from June at an annual rate of 370,000 and were also unchanged from a year earlier. The median condo and co-op price increased 2.2% year over year to $371,800.
The national decline also masked significant differences among the four major regions. The Northeast recorded a 2.0% increase in existing-home sales from June to an annual rate of 500,000. Sales were unchanged from a year earlier, while the median price increased 5.2% year over year to $563,800.
The Midwest saw sales decline 2.0% from June to an annual rate of 970,000, although sales were still 2.1% above July 2025. The median price rose 2.8% to $342,900.
The South experienced the largest monthly decline, with sales falling 3.1% to an annual rate of 1.86 million. Sales were unchanged from a year earlier, while the median price increased 0.9% to $371,700.
The West posted no monthly change in sales, remaining at an annual rate of 730,000. Sales were 1.4% above July 2025, while the median price rose 0.2% to $622,200.
Homes remained on the market for a median of 29 days in July, compared with 28 days in June and 28 days a year earlier. First-time buyers accounted for 29% of sales, down from 33% in June but up from 28% a year earlier.
Cash transactions represented 26% of sales, compared with 25% in June and 31% a year earlier. Individual investors and second-home buyers accounted for 14% of transactions, up from 13% in June but down from 20% a year earlier. Distressed sales, including foreclosures and short sales, remained at 2% of transactions, unchanged from both the previous month and a year earlier.
The average 30-year fixed-rate mortgage was 6.54% in July, according to Freddie Mac, up from 6.49% in June and down from 6.72% a year earlier.
Mortgage rates remain a critical factor for the housing market because they directly affect the purchasing power of prospective buyers and the willingness of existing homeowners to sell.
For now, the July report presents a mixed picture: existing-home sales are modestly higher than a year ago, but monthly sales have declined for two consecutive months. Prices continue to rise, inventory remains constrained and mortgage rates remain above 6%.
The housing market’s ability to move from stabilization toward a broader recovery may therefore depend heavily on whether mortgage rates move closer to the 6% level cited by Yun.
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