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Existing home sales increased 2% in July as mortgage rates retreated and home price growth slowed, according to the National Association of Realtors’ Existing Home Sales Report.
Month-over-month sales increased in the Northeast, South and West, while they decreased in the Midwest. Year over year, sales rose in the South, Northeast and Midwest and fell in the West.
“The ever-so-slight improvement in housing affordability is inching up home sales,” says Lawrence Yun, NAR chief economist. “Wage growth is now comfortably outpacing home price growth and buyers have more choices. Condominium sales increased in the South region, where prices had been falling for the past year.”
Mortgage rates have hovered between 6.5% and 7% due to ongoing economic and tariff uncertainty this year, prompting the Federal Reserve to pause interest rate cuts. Mortgage rates recently peaked around 6.89% in May and have trended downward in recent weeks. They are expected to hover around 6% through the rest of 2025.
