US July existing-home sales slip 1.7%

Existing-home sales in the United States decreased 1.7% month-over-month in July 2026, bringing the seasonally adjusted annual rate of transactions to 4.06 million. Despite the monthly pullback, activity was 0.7% higher than in July 2025, indicating a modest year-over-year increase in closed sales. The July figures point to softer demand compared with June, even as overall sales volumes remain slightly ahead of last year.

The July performance places existing-home sales at a level that is weaker than earlier in the summer, reflecting a loss of momentum in the resale market. The shift comes at a time when borrowing costs have edged higher and affordability pressures remain elevated in many parts of the country.

The national median existing-home price for all housing types in July 2026 was $434,100. This represented a 2.0% increase from one year earlier, continuing a pattern of steady price growth. July marked the 37th consecutive month in which median existing-home prices rose on a year-over-year basis.

The ongoing string of price gains underscores that limited supply and persistent demand continue to support home values. Even as monthly sales eased, the annual price comparison showed no break in the multi-year upward trend.

Total housing inventory at the end of July 2026 was 1.54 million units, a decline of 1.9% from June and 0.6% below levels in July 2025. This stock of homes for sale equated to a 4.6-month supply of unsold inventory at the current sales pace, unchanged from both the prior month and one year ago.

The combination of slightly lower inventory and a stable months' supply reading suggests that the balance between buyers and sellers has not shifted dramatically over the past year. However, the absolute level of available homes remains limited, contributing to continued price appreciation.

Financing conditions became marginally more expensive in July, with the average 30-year fixed-rate mortgage at 6.54%, up from 6.49% in June 2026. Higher borrowing costs can limit purchasing power for households, and the July sales decline coincided with this uptick in mortgage rates.

Market activity indicators reflected a slightly slower pace of transactions. Properties typically remained on the market for a median of 29 days in July, compared with 28 days in June. First-time buyers accounted for 29% of sales, down from 33% the previous month, suggesting that entry-level demand may be coming under increased strain.

While overall sales are modestly above year-ago levels, the combination of higher rates, rising prices, and constrained inventory in July points to a challenging environment for many prospective buyers, particularly those entering the market for the first time.