WASHINGTON, DC — Sales of previously owned U.S. homes slipped again in July, extending a housing slump that has lasted since mortgage rates began climbing in 2022. The National Association of Realtors said existing home sales fell 1.7% from June to a seasonally adjusted annual pace of 4.06 million units. That was just above the 4.05 million pace economists expected, and 0.7% higher than a year earlier.
Prices kept moving higher at the same time. NAR said the national median sales price rose 2% from July 2025 to $434,100, while June’s $442,800 remained the highest monthly median in the association’s data going back to 1999. The report showed how higher borrowing costs and scarce listings continue to limit activity even when sales are holding near a roughly 4-million pace.
What The Report Showed
The July report from NAR points to a market that is still active, but far from balanced. Home sales have been hovering near a 4-million annual rate for about three years, well below the historical norm of about 5.2 million. Inventory also remained tight, with 1.54 million unsold homes at the end of July, down 1.9% from June and 0.6% from a year earlier.
That supply level translated to a 4.6-month inventory. A 5- to 6-month supply is usually considered a healthier balance between buyers and sellers. The association said first-time buyers made up 29% of sales in July, down from 33% in June but up from 28% in July 2025. Historically, they account for closer to 40% of transactions.
Why Buyers Are Strained
Affordability remains the main pressure point. Freddie Mac said last week that the benchmark 30-year fixed mortgage rate rose to 6.69%, the highest in just over a year and the fifth straight weekly increase. The rate move added to the challenge for buyers already facing record home prices and limited choices on the market.
High rates also appear to be discouraging some current owners from listing their homes. Carl Weinberg, chief economist at High Frequency Economics, said people with ultra-low mortgage rates from the COVID era may be reluctant to give them up. That leaves fewer homes for sale, which keeps inventories low and limits the number of deals that can close.
What Comes Next
For buyers, renters and neighbors watching local prices, the July report suggests little immediate relief. The Northeast continued to post the fastest price growth among regions, with values up 5.2% from a year earlier, a sign that shortages can still push costs higher even when national sales are sluggish.
What happens next will depend on whether mortgage rates ease and whether more owners decide to sell. Readers can track future updates through the National Association of Realtors’ monthly sales report and Freddie Mac’s weekly mortgage survey. Those releases show whether inventory, prices and borrowing costs are moving enough to change the market’s direction.
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